A loan is being repaid with 20 payments of 1500 at the end of each year. Interest is calculated at an annual effective rate of 5% for the first 10 years and 4% thereafter. Find the OLB immediately after five payments have been made by both the prospective and the retrospective method.
A loan is being repaid with 20 payments of 1500 at the end of each year. Interest is calculated at an annual effective rate of 5% for the first 10 years and 4% thereafter. Find the OLB immediately after five payments have been made by both the prospective and the retrospective method.
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A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
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The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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Transcribed Image Text:A loan is being repaid with 20 payments of 1500 at the end of each year. Interest
is calculated at an annual effective rate of 5% for the first 10 years and 4% thereafter.
Find the OLB immediately after five payments have been made by both the prospective
and the retrospective method.
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