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A mortgage effective 1 1 ? 2 0 1 6 is being amortized by equal monthly installments of x over five years including interest at

A mortgage effective 11?2016 is being amortized by equal monthly installments of x
over five years including interest at a nominal annual rate of 12% compounded monthly.
The first installment was due 21?2016 and the last installment was to be due 11?2021.
Immediately after the 24th installment was made on 11?2018, a new level monthly
installment Y is determined (using the same rate of interest) to shorten the total
amortization period to 3.5 years so that the final installment will fall due on 71?2019.
In which of the following ranges is the ratio Y/X?
Possible Answers
1.25
1.25 but 1.50
1.50 but 1.75
1.75 but 2.00
2.00
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