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A young couple wants to buy a studio apartment valued at \(\dollar 175\,000\). The bank offers a mortgage at an annual interest rate of \(6\pourcent\) compounded monthly. The couple budgets that they can afford a monthly repayment of \(\dollar 1\,000\).
  1. Calculate the duration of the loan (\(N\)) using your TVM solver. Convert this to years.
  2. Conclusion: Will the bank accept this loan? Discuss based on the duration.

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