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Time Value of Money: Annuity Question 1 You need to borrow $800,000 to buy a house. You borrow the money from a bank via a

Time Value of Money: Annuity

Question 1

You need to borrow $800,000 to buy a house. You borrow the money from a bank via a mortgage with a 25-year term. The mortgage requires you to make monthly repayments, with the first payment one month from now. If the monthly interest rate is 0.5%, work out the fair monthly repayment that you will have to make?

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