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How are loan payments affected by interest rates? Is a loan amortisation table necessary? Timothy borrowed $ Y from the bank for 25 years, servicing
How are loan payments affected by interest rates? Is a loan amortisation table necessary?
Timothy borrowed $ Y from the bank for 25 years, servicing this loan with monthly payments of $Z, with the first payment being made one month after the loan. The nominal interest rate is 6% per annum, compounded monthly. Ifthe interest portion of the 8th payment is $1250, the value of SZ is closest to: (B) (C) (D) (E) $1,610 $1,627 $1,682 $1,708 $1,725
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