Assume Jimmy borrows $730,000 today for a house mortgage, and plans to pay back in full after
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Assume Jimmy borrows $730,000 today for a house mortgage, and plans to pay back in full after paying for 30 years. If the interest rate is 9.2% and it will compound semiannually, how much should Jimmy pay each year? HINT: Remind yourselves of the fact that the value of “payment” you will obtain either by hand or a financial calculator reflects payment per one period, which may not necessarily reflect what you pay in a year. calculate.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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