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Accrual rate and payment rate on mortgage loan

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Reference no: EM132516550

1. Tom is about to make an investment, assuming he had to choose between Ordinary Annuity and Annuity Due. Which of these two types of payment would you recommend for tom assuming all else being equal, and why?

2. Give examples of when a person might need to calculate the following

a. Present value

b. Loan balance

3. What is the accrual rate and payment rate on a mortgage loan? What happens when the two are different?

4. Discuss two elements effecting the house prices to increase?

Reference no: EM132516550

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