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A borrower and lender agree on a negative-amortizing loan in the amount of $350,000 at 4% interest for 30 years. The amount due at maturity will be $380,000, Calculate the constant monthly payments.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Question

A borrower and lender agree on a negative-amortizing loan in the amount of $350,000 at
4% interest for 30 years. The amount due at maturity will be $380,000. Calculate the
constant monthly payments.
O $1,123.44
O $823,52
O $1,670.95
none of these

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