Present Value of an Annuity; Amortization
– This ignores interest Suppose there are n payments left. Outstanding balance is present value of an annuity with same payments as before, but with the fewer number of payments. Amortization Schedules Problem 5. A $7,000 debt is to be amortized in 15 equal monthly payments of $504.87 at 12% annual interest on the unpaid balance. What is the ... ................
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