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A loan of 200,000 is going to be paid over 20 years with monthly payments. The first payment is one month from now. During each
A loan of 200,000 is going to be paid over 20 years with monthly payments. The first payment is one month from now. During each year, the payments are constant, but they increase by 3% each year. The annual effective rate of interest is 6%. a) Calculate the total amount of the payments made at the end of the first year. b) Calculate the outstanding loan balance on the loan ten years from now after the payment is made.
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