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Consider a lifetime mortgage with monthly payments of 1000 for 10 years. The interest rate is 8%. The current property value is 250,000 and it
Consider a lifetime mortgage with monthly payments of 1000 for 10 years. The interest rate is 8%. The current property value is 250,000 and it is expected that it will appreciate by 2% per annum. Assume that the mortgagor dies in 12 years. The equity share of the bank at that point is closest to
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