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Most real-world mortgages feature uniform payments (CFs) and terms from 15 to 30 years. Solve this real-world mortgage problem: Wells Fargo offers you a 6%,
Most real-world mortgages feature uniform payments (CFs) and terms from 15 to 30 years. Solve this real-world mortgage problem: Wells Fargo offers you a 6%, 30 year mortgage. The firm will give you $100K today to help you buy a house that costs $150K. (IE: you will buy the house with $50K of your own funds and $100K of mortgage loan funds). What is your annual mortgage payment (CF or C)? Hint: use formula 74e): - (1+r)" PV = C * col tot T C = Periodic Payment = CF r=rate per period n = number of periods
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