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What is the formula for mortgages?

User Insomnious
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1 Answer

4 votes

Answer:

Loan payment = Loan amount / Discount factor

Number of Periodic Payments (n) = Payments per year times number of years. Periodic Interest Rate (i) = Annual rate divided by number of payments per. Discount Factor (D) = {[(1 + i) ^n] - 1} / [i(1 + i)^n]

Explanation:

User Davis Molinari
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