The Size of the Monthly Repayment $k$ That Amortizes a Loan Of

question 113

Short Answer

The size of the monthly repayment $k$ that amortizes a loan of $A$ dollars in $N$ years at an interest rate of $r$ per year, compounded monthly, on the unpaid balance is given by
$$k = \frac { A r } { 12 \left[ 1 - \left( 1 + \frac { r } { 12 } \right) ^ { - 12 N } \right] }$$
The value of $r$ can be found by performing the iteration
$$r _ { n + 1 } = r _ { n } - \frac { A r _ { n } + 12 k \left[ \left( 1 + \frac { r _ { n } } { 12 } \right) ^ { - 12 N } - 1 \right] } { A - 12 N k \left( 1 + \frac { r _ { n } } { 12 } \right) ^ { - 12 N - 1 } }$$
A family secured a loan of $\$ 360,000$ from a bank to finance the purchase of a house. They have agreed to repay the loan in equal monthly installments of $\$ 2476$ over 25 years. Find the interest rate on this loan. Round the rate to one decimal place.

Grasp the concept of sensory thresholds and the importance of signal detection in perception.

Understand the physiological and psychological aspects of pain management and control.

Analyze the impact of genetics and cognition on sensory experiences and perceptions.

Understand the influence of mental expectations on sensory perception.

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Definitions:

Predatory Pricing

The practice of selling a product or service at a very low price with the intent of driving competitors out of the market or creating barriers to entry for potential new competitors.

Meeting-The-Competition Defense

A legal defense allowing a business to justify certain behaviors, such as price fixing, by proving they were necessary to meet a competitor's prices.

Per Se Defense

A legal argument that, if proven, is sufficient by itself to defend the position of the defendant without the need for further evidence.

Exclusive-Dealing Contract

An agreement in which a seller requires that a buyer buy products supplied only by that seller.