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In year 3 , I get loan value of 2 1 6 , 7 9 1 based on the above formula? However, I dont follow

In year 3, I get loan value of 216,791 based on the above formula? However, I dont follow why you take the outstanding loan balance divided by 30 as the amortization gets smaller each year and will take more than 30 yrs to pay it off

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