Principal of $259 000 on a House Is Mortgaged at a Rate

question 89

Essay

Principal of $259 000 on a house is mortgaged at a rate of 3.7% amortized over a period of 25 years resulting into a total interest of $137 178.49. The bank also offers simple interest for the customers, who do not want to pay compound interest. If bank wishes to earn the same amount of interest over the period of 25 years, what rate will the bank charge to its customers, if the loan is paid in equal annual installments?

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Definitions:

Gender Roles

Social and behavioral norms that are considered appropriate for individuals of a specific sex within a given culture or society.

Autism Spectrum Disorders

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, and communication.

Impaired Communication Skills

Difficulties or deficits in the ability to express oneself or understand others, which can impact social interactions, learning, and daily functioning.

Repetitive Behaviors

Actions or patterns of behavior that are performed the same way repeatedly, often observed in developmental disorders such as autism.