Calculate mortgage payments, from the interest rate and the number of years for a fixed initial principal value.
Mortgages are generally used for the purchase of large fixed assets, such as a house or land. The mortgage can be calculated either to reduce the principal value to zero at the end of the term, zero interest with no reduction in principal, or to reduce the principal to a user defined value at the end of the term. The mortgage payments are assumed to be constant for each period. The principal is assumed to compound each period. The total number of periods equals the number of years times the number of periods per year. For monthly compounding interest the number of periods per year equals 12. For annual compounding interest the number of periods per year equals 1. The total number of mortgage payments equals the number of periods. The first mortgage payment is assumed to be made at the end of the first period, with additional mortgage payments at the end of each period. The final payment is assumed to be made at the end of the final period.
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