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Question - The price of a home is $180,000. The bank requires a 5% down payment and two points at the time of closing. The cost of the home is financed with a 15-year fixed-rate mortgage at 7.5%.
a. Find the required down payment.
b. Find the amount of the mortgage.
c. How much must be paid for the two points at closing?
d. Find the total cost of interest over 15 years, to the nearest dollar.
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