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You Have Approached Which Bank for a Loan to Buy

Question 5

Multiple Choice

You have approached Which Bank for a loan to buy a house.The bank offers you a $400 000 loan,repayable in equal monthly instalments at the end of each month for the next 20 years.If the interest rate on the loan is 9% per annum,compounded monthly,your monthly repayment (to the nearest dollar) will be:


A) $1831
B) $3599
C) $2821
D) $4667
E) $3652

Correct Answer:

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