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Question - Jonny Walker purchases his first condominium downtown Toronto by obtaining a $200,000 mortgage loan from Borrowers Are Us Inc. Jonny Walker agrees to make monthly payments of $1,200. The interest rate applied to the unpaid balance is 6% per year.
Prepare the amortization schedule to be used for this loan. What is the unpaid balance of the mortgage loan at the end of the third month?
$200,000
$199,599
We need the effective interest rate to calculate this amount
$199,800
$199,397
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