The Flemings secured a bank loan of $328,000 to help finance the purchase of a house. The bank charges interest at a rate of 2%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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The Flemings secured a bank loan of $328,000 to help finance the purchase of a house. The bank charges interest at a rate
of 2%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have
agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the
loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)
%24
Transcribed Image Text:The Flemings secured a bank loan of $328,000 to help finance the purchase of a house. The bank charges interest at a rate of 2%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.) %24
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