Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is $17,000 and the interest rate is 4.2% . What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.

Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is $17,000 and the interest rate is 4.2% . What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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Question

Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is
$17,000
and the interest rate is
4.2%
. What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.

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