8- Suppose that you obtain a loan from a bank. The loan amount is 60.000 TL and has a 5 years maturity. You have to pay monthly installments and the annual interest rate is determined as 20%. Then, you put the 50.00O TL of the loan amount into a term deposit account on a monthly basis for 5 years, so that you pay your installments with the interest earned. To achieve an exact match between installments and interest income, what should be the annual interest rate on the term deposit? 38,15% 29,08% O 34,23% 25,19%
8- Suppose that you obtain a loan from a bank. The loan amount is 60.000 TL and has a 5 years maturity. You have to pay monthly installments and the annual interest rate is determined as 20%. Then, you put the 50.00O TL of the loan amount into a term deposit account on a monthly basis for 5 years, so that you pay your installments with the interest earned. To achieve an exact match between installments and interest income, what should be the annual interest rate on the term deposit? 38,15% 29,08% O 34,23% 25,19%
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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