Joe borrows $200 000 which is to be repaid in equal monthly instalments. The interest rate is 7.2% per annum reducible, calculated monthly.
It can be shown that the amount,
where
- The minimum monthly repayment is the amount required to repay the loan in 300 instalments.
Find the minimum monthly repayment. (3 marks)
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- Joe decides to make repayments of $2800 each month from the start of the loan.
How many months will it take for Joe to repay the loan? (2 marks)
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