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Business, 17.09.2019 23:00 katiemh8302

Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities. mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the beginning, and then you make monthly payments to the lender. you’ve decided to buy a house that is valued at $1 million. you have $100,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. your bank has approved your $900,000 mortgage, and is offering a standard 30-year mortgage at a 12% fixed nominal interest rate (called the loan’s annual percentage rate or apr). under this loan proposal, your mortgage payment will be per month. (note: round the final value of any interest rate used to four decimal places.)

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