Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Question
A young newly married couple wish to purchase a unit house in a remote area priced at $190,000. They want to borrow the entire amount and repay this amount in full plus interest over the next 20 years. You can offer them a mortgage for the full amount at an interest rate of 17% (sounds like extortion to me) and calls for equal annual instalment payments at the end of each of the 20 years.
Required: (a) Calculate the amount of the annual payment? (b) Create and complete the amortization
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