You need to borrow $175,000 in order to buy a new house. The loan will...
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You need to borrow $175,000 in order to buy a new house. The loan will be for 30 years. In excel, compute the monthly payment amounts for interest rates of 0% to 5%, in 50 basis point increments. Which of the following is true?
All else equal, a higher interest rate will result in a lower monthly payment.
All else equal, a higher interest rate will result in a lower effective rate.
All else equal, a higher interest rate will result in a higher monthly payment.
All else equal, a higher interest rate will result in a higher compounding frequency.
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