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Assume that your aunt sold her house on December 31, and tohelp close the sale she took a second mortgage in the amount of$10,000 as

Assume that your aunt sold her house on December 31, and tohelp close the sale she took a second mortgage in the amount of$10,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 10%,it calls for payments every 6 months, beginning on June 30, and the mortgageis to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRSand the person who bought the house of the interest that was included in thetwo payments made during the year. (This interest will be income to your aunt and adeduction to the buyer of the house.) To the closest dollar, what is the totalamount of interest that was paid during the first year?

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