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Today you received a 20 yr $25,000 loan. Calculate the monthly payment if the loan accrues...

Today you received a 20 yr $25,000 loan. Calculate the monthly payment if the loan accrues 6% interest.

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Answer #1
Annuall rate = 6%
Mnthly rate = 6/12 = 0.50%
Loan amount 25000
Divide: Annuity PVF at 0.50% for 240 periods 139.5808
Monthly instalment 179.1078
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