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A real estate speculator purchases a tract of land for $1 million and assumes a 25-year mortgage at 4.2% interest compounded monthly. a) Suppose that

A real estate speculator purchases a tract of land for $1 million and assumes a 25-year mortgage at 4.2% interest compounded monthly.

a) Suppose that at the end of 5 years, the mortgage changed to a 10-year term for the remaining balance. What is the new monthly payment?

b) Suppose that after 5 more years, the mortgage is required to be repaid in full. How much will then be due?

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