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Consider a mortgage with a principal P, T-year amortization, and

Question : Consider a mortgage with a principal P, T-year amortization, and : 6870

Consider a mortgage with a principal P, T-year amortization, and an annual interest rate r compounded monthly. Find the equivalent continuous compound interest rate re, and use it to compute a monthly payment assuming continuous compound with interest rate r_c. Do you get the same answer as computed from monthly compound interest? What is the present value of the total payments? What is the present value of the total amount of interests?

 

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