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Real estate prices are so high in Tokyo that some mortgages are written for 99 years...

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Finance

Real estate prices are so high in Tokyo that some mortgages arewritten for 99 years in an attempt to keep down the monthlypayments. A) What is the monthly payment on a $500,000 mortgage at8% for 99 years? B) How much does this save the borrower each monthcompared to a 30-year mortgage at 8% for the same amount? C) Whichterm results in the higher total payment?

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A Loan Amount P 500000 Interest Rate 8 or 00812 monthly Number of payment periods n 9912 1188 months Let monthly payments made be X Hence the sum of present value of monthly    See Answer
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Real estate prices are so high in Tokyo that some mortgages arewritten for 99 years in an attempt to keep down the monthlypayments. A) What is the monthly payment on a $500,000 mortgage at8% for 99 years? B) How much does this save the borrower each monthcompared to a 30-year mortgage at 8% for the same amount? C) Whichterm results in the higher total payment?

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