An equal-payment home mortgage loan is an example of an annuity. The above mentioned statement is true.
The present value of an annuity is calculated as the total of all the discounted values that have been received or paid at the regular intervals. To indicate the equal monthly instalments, it is typically used in loan agreements. A house mortgage loan with equal payments has an equal payback amount for each of the instalments. It indicates that the bank grants a loan in exchange for an equal instalment, which is also referred to as equated annual or monthly instalments based on time.
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