This is an Amortization . . .A mortgage is taken out for $80,000.
It is to be paid by annual installments of $5000 with the first payment
being made at the end of the first year that the mortgage was taken out.
Interest of 4% is then charged on any outstanding debt.
Find the total time taken to pay off the mortgage.
The answer given is 25 years. . . . . I don't agree
The formula is: .
. . where: .
We have: .
Take logs: .