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Problem-
A $40,000 mortgage loan charge interest at 9.75% compounded monthly for a 4 year term. Month payments were calculated for a 15 year amortization
1. What will be the principal balance at the end of the first term?
2. What will the monthly payment be on renewal for a 3 year term if it is calculated for an interest rate of 9% compounded monthly and an 11 year amortization period?
Additional information-
The problem belongs to Accounting and it discusses about calculation of principal balance and compounded monthly interest for mortgage loan.
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