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I have a standard mortgage with a nominal interest rate of 5% per year compounding monthly, and lasting 10 years, with monthly fixed repayments of
I have a standard mortgage with a nominal interest rate of 5% per year compounding monthly, and lasting 10 years, with monthly fixed repayments of $1,000. Assuming no fees or other costs, work out the amount I would have borrowed at the start. Show your working, using the relevant formula for an annuity, and calculate the actual value.
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