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A mortgage contract for $49,000 written 10 years ago is just at the end of its second five-year term. The interest rates were 8% compounded
A mortgage contract for $49,000 written 10 years ago is just at the end of its second five-year term. The interest rates were 8% compounded semiannually for the first term and 7% compounded semiannually for the second term. If monthly payments throughout have been based on the original 25-year amortization, calculate the principal balance at the end of the second term assuming the amortization period of 20 years on renewal after the first five years.
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