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5. You want to buy a house and have determined you can afford a 30 year mortgage with monthly payments of $1,644. If the APR
5. You want to buy a house and have determined you can afford a 30 year mortgage with monthly payments of $1,644. If the APR on the loan is 3.3%, how much home can you afford to buy?
6. What is the difference in present value between a perpetuity that pays $8,500 per year and an ordinary annuity that pays $8,500 per year for 18 years? Assume a discount rate of 11%.
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