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Question 7.6: For the previous example, determine the following at the end......

For the previous example, determine the following at the end of the first period:
1. The amount of interest repaid
2. The amount of the principal repaid
3. The amount of the principal outstanding.

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The amount paid at the end of the first period is £1074.65.

1. The amount paid in interest for the first period is 150000 ∗ 0.005 = £750.

2. The amount of the principal repaid is £1074 – 750 = £324.65.

3. The amount of the principal outstanding at the end of the first interest period is £150,000 – 324.65 = £149,675.35.

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