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PROBLEM-Home Mortgage. GIVEN:mortgage amount = $250,000 Interest Rate =7%
1. What are annual payments to required to finance mortgage over 30 years?
2. What are the TOTAL payments.
3. How much is the total interest paid?
4. What are ANNUAL pmts for a 15 yr mortgage @ the same 7% rate ?
5. What are total pmts for 15 yr mortgage ?
6. What are savings of a 15 year mortgage vs a 30 year mortgage
7. What is the future value of $3,000 set aside each year for 20 years with interest compounded annually at 10%
8. What is the Interest Income for Q5?
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