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Assume you want to take out a $300,000 loan on a 25-year mortgage with end of month payments. The annual rate of interest is 8
Assume you want to take out a $300,000 loan on a 25-year mortgage with end of month payments. The annual rate of interest is 8 percent. 20 years from now, you need to make an ending additional lump sum payment of $45,000. Because you expect your income to increase, you want to structure the loan so that the beginning of each year your monthly payments increase by 2.5 percent. Determine the amount of each years monthly payment with Excel Solver.
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