Consider a growing equity mortgage on a $250,000 mortgage with yearly payments. The stated interest rate on
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Consider a growing equity mortgage on a $250,000 mortgage with yearly payments. The stated interest rate on the mortgage is 6%, but this only applies to the first annual payment. Thereafter, the annual payment will grow by 5.5797%. Develop an amortization table for this loan, assuming the initial payment is based on 30 years and the loan pays off in 15 years.
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The payment for the 1st year is calculated as I 6 PV 250000 FV 0 N 30 Compute PMT PMT 1816223 The ye...View the full answer
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Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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