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Task # 7 ( Mortgage ) . In the mortgage example, given in class ( Unit 3 , slides 5 7 - 5 9 )
Task #Mortgage In the mortgage example, given in class Unit slides we calculated the monthly payment. You might be interested which part of this payment is interest and which part is repayment of the debt. Use a spreadsheet to calculate the interest payment, repayment of principal and the loan balance for every month. Draw a graph that shows nicely how the share of interest decreases over time while the share of repayment increases. Task #Rule of A website that helps people to make the right nancial decisions has come up with the rule of It says that the opportunity cost of $ of weekly expenses during ten years in terms of money that you could have instead on your bank account in ten years is $ The rule should help you to avoid some bad habits. For example, if you buy a coee to go and a cookie at Starbucks every working day for $ more than it would cost to have a coee and a cookie at home almost nothing you could have instead of this weekly expense of $ a nice amount equal to $times $ on your bank account in ten years. The website just states that the author assumed a rate of return on your investment with weekly compounding. How exactly did the author come up with the number of
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