MATHEMATICAL FINANCE

Mathematical Finance

Mathematical Finance

Introduction

In this exercise, there is a requirement to construct the amortization table for the loan borrowed for a particular buying decision. A purchase for a residential property will be calculated for this exercise. The property that will be purchased would have a price of $250,000. A down payment of 20% will be made on the property. After the down payment, a mortgage agreement will require the payment of the remaining amount in the next five years at 10% discount rate. In this way, the total amount will be paid at the end of five years. Therefore, a diagram ...