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A real estate investor purchased a property for $1 million. He made a 10% down paymentand financed the remaining $900,000 at a 4.5% annual interest

A real estate investor purchased a property for $1 million. He made a 10% down paymentand financed the remaining $900,000 at a 4.5% annual interest rate for 30 years.



a. Compute the monthly mortgage payment.


b. Compute the mortgage loan balance after five years assuming every payment wasmade on time and no additional loan payments were made.

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