You need to borrow $100,000. You have two loan options: 1) 3.5% amortized over 30 years. 2) 3% amortized over 15 years. If you discount the payments streams at 8%, what is the difference in the present value of those two loans?
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Answer to 10/22/2012 problem:
(N=4,PV= -1900,PMT=500,FV=0) I=25.01%