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You are considering the purchase of a house. The house costs $300,000. You have no down payment. You have several financing alternatives.
Alternative 1:
25 year mortgage term 6% interest Bimonthly (24 payments/year)
Alternative 2:
20 year mortgage term 6% interest Bimonthly (24 payments/year)
Alternative 3:
20 year mortgage term 6% interest Monthly (12 payments/year)
Question a: For each alternative calculate
1. The payment cost
2. Total cost over the term of the mortgage
3. Total interest cost over the term of the mortgage
4. Compare the results and recommend which is the best decision and explain why.
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question 38alladin company purchased machine 201 on may 1 2012. the subsequent information relating to machine 201 was
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