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Michael Jordan has just arranged to purchase an $825,000 vacation home in the Bahamas with a 20% down-payment. The loan has an interest rate of
Michael Jordan has just arranged to purchase an $825,000 vacation home in the Bahamas with a 20% down-payment. The loan has an interest rate of 5.4% (compounded monthly) and a 30-year term. If the value of the home is expected to appreciate 2% per year, what will his equity in the house be in 8 year?
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