Consider another loan of $75,000 with a repayment term of 25 years. The borrower pays only interest on the loan, annually in arrears at a rate of 6% per annum. The borrower will also take out a separate savings policy, involving monthly payments in advance, such that the proceeds will be sufficient to repay the loan at the end of its term. The payments into the savings policy accumulate at a rate of interest of 5% per annum effective. Compute the monthly payments into the savings account which ensures that it contains $75,000 after 25 years.

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