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A house is to be sold either on a cash basis or through a loan .The cash price is sh.750,000.The loan condition are as follows :there is to be a down payment of 10% of the cash price and the rest of the money is to be paid through a loan at 10% per annum compound interest. A customer decided to buy the house through a loan .
(a)(i)Calculate the amount of money loaned to the customer (ii)The customer paid the loan in 3 years .Calculate the total amount paid for the house . (b)Find how long the customer would have taken to fully pay for the house if she paid a total of sh.891,750.