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Posted on Jul 22, 2024

An individual obtains a twenty-five year $220,000 interest only loan for 5.7% interest compounded monthly. If they can set up a sinking fund at 4.5%

An individual obtains a twenty-five year $220,000 interest only loan for 5.7% interest compounded monthly. If they can set up a sinking fund at 4.5% interest compounded monthly, find the total periodic payment. At what rate is it less expensive to amortize the debt?

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