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We take a​ 10-year mortgage for ​$100 comma 000 at 7.25​% p.a. It is to be...

We take a​ 10-year mortgage for ​$100 comma 000 at 7.25​% p.a. It is to be repaid in monthly repayments. ​(a)What is the repayment​ amount? Assume that interest is compounded monthly. Which formula should you use to solve this​ problem? ​(b) What is the balance outstanding after two​ years? How much principal and how much interest have been​ paid? ​(c) After two​ years, the interest rate falls to 6.75​% p.a. What prepayment penalty would make it unattractive to prepay the​ loan?

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