Present Value A 25-year fixed-rate mortgage has monthly payments of 717 per month and a mortgage interest

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Present Value A 25-year fixed-rate mortgage has monthly payments of €717 per month and a mortgage interest rate of 6.14 per cent per year compounded monthly. If a buyer purchases a home with the cash proceeds of the mortgage loan plus an additional 20 per cent deposit, what is the purchase price of the home? Assume that the additional deposit amount is 20 per cent of the mortgage loan amount.

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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