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Question: equation 11 pn 1rpn1mn...

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2. Write a simple Matlab program that implements the mortgage calculations described in this chapter (including equation (1.1) in the lecture notes). The program should take as inputs the initial amount of the loan, annual percentage interest rate, number of the months for which the loan is taken, and provide as output the amount owed at the beginning of each month money is owed to the lender after the monthly payment is made, assuming that monthly payments are made i equal amounts. Use this program to determine the total savings possible by paying off a 30-year, $300,000 loan at the annual interest rate of 4.5% in 15 years. (Assume that instead of the monthly payment for the 30-year loan, you will pay a fixed amount more each month to make the 15-year pay off possible.)

equation (1.1)

p[n] = (1+r)p[n-1]-m[n]

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