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A mortgage requires you to pay $ 7 0 , 0 0 0 at the end of each of the next eight years. The interest
A mortgage requires you to pay $ at the end of each of the next eight years. The
interest rate is
a What is the present value of these payments?
b Calculate for each year the loan balance that remains outstanding, the interest
payment on the loan, and the reduction in the loan balance
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