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# Financial Mathematics Help needed. No idea how to get the answer. Watch

1. The Question is

A loan of £10,000 is to be repaid over ten years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Find the total principal repaid and the interest paid in the first year.

It says the answer is £548.38 and £1173.26 respectively. I cannot seem to get it. My answers keep being

£956.05 and £99.98

I get the monthly repayment to be £87.60

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Updated: May 22, 2016
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