A loan is repayable by decreasing annuity annually in arrears for 20 years. The repayment at the end of the first year is $6000 and subsequent repayments reduce by $200 each year. The repayments were calculated using a rate of interest of 9% per annum effective. Calculate the original amount.
Mortgages
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.
Mortgage
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.
A loan is repayable by decreasing
Step by step
Solved in 2 steps
