Question
Arya borrowed $400,000 using a 30-year, fully amortizing, constant payment mortgage with interest rate of 9% p.a. compounded monthly. After she submits the 100-th monthly
Arya borrowed $400,000 using a 30-year, fully amortizing, constant payment mortgage with interest rate of 9% p.a. compounded monthly. After she submits the 100-th monthly payment, the market interest rate becomes 10% p.a. compounded monthly. At this time, the value of this mortgage equals V and the remaining balance equals B.
A. It depends
B. V=B
C. V>B
D. V
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
8th Edition
007322359X, 9780073223599
