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After three years of the first five-year term at 6.3% compounded semiannually, Dean and Cindy decide to take advantage of the privilege of increasing the
After three years of the first five-year term at 6.3% compounded semiannually, Dean and Cindy decide to take advantage of the privilege of increasing the payments on their $200,000 mortgage loan by 10%. The monthly payments were originally calculated for a 30-year amortization.
How much will the amortization period be shortened? What will be the principal balance at the end of the five-year term?
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