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My Question: Consider the mortgage scenario in Worksheet 1 . If the monthly mortgage installment is 2 C instead and the term of the mortgage
My Question:
Consider the mortgage scenario in Worksheet If the monthly mortgage installment is C instead and the term of the mortgage remains unchanged, approximate the new effective interest rate using linear interpolation between and per annum. Show all steps.
Worksheet :
A company purchases a residential unit for $ million, with of the sum financed by a year mortgage with equal monthly installments. Suppose the prevailing interest rate is fixed at per annum effective a Calculate the monthly mortgage installment, Cb An installment can be decomposed into two components: payment of interest and repayment of principal. From which point onwards will the repayment of principal exceed the payment of interest?
Answer from Worksheet : C
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