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Annuity

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You borrow $250,000 to buy a house; if the annual interest rate is 22.5% and the term of the loan is twenty years, what is the annual payment required to retire the mortgage loan?

Please provide response in Excel.

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Solution Summary

The annuity (annual payment) required to retire the mortgage loan is calculated.

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We need to calculate PVIFA
PVIFA= Present Value Interest Factor for an Annuity
It can be read ...

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