4 Annuities and Loans
Example 13 (More on Bryan’s Loan). Exactly 10 years after Bryan took out his home loan, he strikes it rich. First thing he wants to do is pay o the remaining balance on his home loan. How much will he need to pay? Solution: He has 20 years remaining on the loan, so 20 12 = 240 payments left. We compute the PV of the loan 10 years into the loan. ................
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