11 Cashflow and Compounding
Compounding
Compounding and mortgages
On this and the next page, we compare two more mortgages.
They both have a starting balance of $250,000 with an annual repayment amount of $25,000 per annum.
On this page, the interest rate is 8% per annum.
The table on the next page assumes an interest rate of 6.5% per annum.
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