A person borrows $100 000 at the beginning of a year and agrees to repay the loan
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A person borrows $100 000 at the beginning of a year and agrees to repay the loan in ten equal instalments at the end of each year. Interest is charged at a rate of 6% compounded annually.
(a) Find the annual repayment.
(b) Work out the total amount of interest paid and compare this with the total interest paid when repaying the loan in five equal annual instalments instead of ten.
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