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Time value of money

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Time Value of Money

  • What variables need to be quantified when comparing the purchase of a car using a lease or a loan; how do they differ?

•If, when you start to pay off your mortgage, you make an additional $100 per month principal payment on a $200,000 loan at 5% fixed-rate interest for 30 years how much sooner will you pay off the loan? Would you do this? Why? Why not? Use Excel to calculate. The answer should be one or two paragraphs in length, and must include calculations for the mortgage payoff date

 

Reference no: EM13660790

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