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- 2011-5-25
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The sinking fund can be calculated with atleast two known approaches.... One gives you the mortgage cost after multiplying that rate by 12... and the other way you need to add it to the cost given in the question after multiplying by 12.
using the FV=1 method gives you the mortgage cost as a whole after multiplying by 12 and so I find this way the easiest. |
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