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A 10-year 200.000 mortgage is contracted in swiss francs (CHF) at a fixed interest rate of 3% annually to be paid in equal monthly installments
A 10-year 200.000 mortgage is contracted in swiss francs (CHF) at a fixed interest rate of 3% annually to be paid in equal monthly installments (compounded monthly meaning a 3%/12 monthly rate). The initial exchange rate is 1.10 CHF/. What is the balance in euros at the end of year 4 if the exchange rate fell to 0.9 CHF/ by that date?
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