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Consider a $75,000, 7.75%, 30-year, constant amortization mortgage (CAM) with monthly payments.
(a) What is the total monthly payment that will be due on this mortgage in the first month? How much of this payment is attributable to principal? How much to interest?
(b) What is the total monthly payment that will be due in the 2nd month? How much of this will be attributable to principal? How much to interest?
(c) What is the total payment that will be due in the 23rd month? How much of this payment will be attributable to principal? How much to interest?
(d) What will be the balance due on this mortgage at the end of two years?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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