oan of £65,600 is contracted out to be repaid by level half-yearly instalments over 19 years. The repayment instalments were originally calculated using a nominal rate of interest of 7.8% per annum convertible half-yearly. Calculate, the initial level half-yearly instalment, the loan outstanding after the 20th instalment. No tables, only formulas, please

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.