A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment at the end of the first year is $6,000 and subsequent repayments reduce by $200 each year. The repayments were calculated using an effective rate of interest of 9% per annum. Calculate the original amount of the loan.

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A: N = Number of payments = 20 First year repayment = 6000 Interest rate = 9% p.a. Decrease in…

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Q: A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment…

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