Question: Consider a loan that is repayable by regularly decreasing monthly instalments over a 6 -year period. Thus, the instalment at the end of the first

Consider a loan that is repayable by regularly decreasing monthly instalments over a 6 -year period. Thus, the instalment at the end of the first month is set to 690 and subsequent payments reduce by an amount of 5 each month. Assuming that the rate of interest is 5 . 1 % per annum effective for the entire term of the contract, calculate, to 2 decimal places, the following:

a) The initial amount of loan that was borrowed:

b) The amount of loan outstanding at the start of the 4 th year:

c) The amount of capital component in the 37 th instalment:

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