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Borrow $100,000 with a 20 year fixed mortgage at 6%. Calculate the monthly payment if the...

Borrow $100,000 with a 20 year fixed mortgage at 6%. Calculate the monthly payment if the loan is

  1. Fully Amortizing?

A. 726.53

B. 6000

C. 716.43

D. 216.43

Solutions

Expert Solution

Answer: Option C

PV =

r = 6%/12 = 0.5% (monthly), n = 20 * 12 = 240 months

100,000 = P * 139.5808

P = $716.43

jeff jeffy answered 2 years ago
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