a 20-year a

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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Assume you are considering a $1,000,000 mortgage at a quoted rate of 4.25%. If you want to make equal monthly payments based on a 20-year amortization period, what discount rate would you use in the annuity present value formula to find the amount of your payments?

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