Property worth
$249,000.00
can be purchased for 15% down and
monthly
mortgage payments of
$ 1325.00
for
25
years. What effective annual rate of interest is charged?
Using financial calculator
PV=-249000*(1-15%)
PMT=1325
N=12*25
FV=0
CPT I/Y=0.475%
Hence, effective annual rate=(1+0.475%)^12-1=5.851%
Property worth $249,000.00 can be purchased for 15% down and monthly mortgage payments of $ 1325.00...
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