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​(Annuity payments)  To buy a new​ house, you must borrow ​$145, 000. To do​ this, you take out a ​$145, 000​, 20​-year, 9 percent mortgage. Your mortgage​ payments, which are made at the end of each year​ (one payment each​ year), include both principal and 9 percent interest on the declining balance. How large will your annual payments​ be?

​(Annuity payments)  To buy a new​ house, you must borrow ​$145, 000. To do​ this, you take out a ​$145, 000​, 20​-year, 9 percent mortgage. Your mortgage​ payments, which are made at the end of each year​ (one payment each​ year), include both principal and 9 percent interest on the declining balance. How large will your annual payments​ be?

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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​(Annuity payments)  To buy a new​ house, you must borrow ​$145, 000. To do​ this, you take out a ​$145, 000​, 20​-year, 9 percent mortgage. Your mortgage​ payments, which are made at the end of each year​ (one payment each​ year), include both principal and 9 percent interest on the declining balance. How large will your annual payments​ be?

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