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12. Rob and Laura wish to buy a new home. The price is $187,500 and they plan to put 20% down. New Rochelle Savings and

12. Rob and Laura wish to buy a new home. The price is $187,500 and they plan to put 20% down. New Rochelle Savings and Loan will lend them the remainder at a 10% fixed rate for 30 years, with monthly payments to begin in one month. Ignore taxes. How much will their monthly payments be?

a. $1,316.36

b. $1,325.99

c. $1,512.56

d. $1,645.45

e. $1,760.45

13. What is the present value of $1,000 payments received at the beginning of each year

for the next 10 years? Assume an interest rate of 5.625%.

a. $7,069.13

b. $7,093.62

c.$7,492.64

d.$7,914.10

e.$8,165.12

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