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Suppose you take out a $ 1 1 3 , 0 0 0 , 2 0 - year mortgage loan to buy a condo. The
Suppose you take out a $year mortgage loan to buy a condo. The interest rate on the loan is To keep things simple, we will assume you make payments on the loan annually at the end of each year.
h Now assume the inflation rate is and the real interest rate on the loan is unchanged. What must be the new nominal interest rate?
i Recompute the amortization table.
i What is the real value of the first yearend payment in this highinflation scenario?
j What is the real value of the last payment in this highinflation scenario? PLEASE SEE THE ATTACHED FOR THE CORRECT ANSWERS TO QUESTIONS H & I I NEED THE CORRECT ANSWER TO QUESTIONS I & J
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