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Assume that your aunt sold her house one year ago, last December 31, and to help close the sale she took a second mortgage in

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Assume that your aunt sold her house one year ago, last December 31, and to help close the sale she took a second mortgage in the amount of $25,000 as part of the payment. The mortgage has a quoted (APR) interest rate of 8% with semiannual compounding; the mortgage called for payments every 6 months, beginning on June 30, and is to be amortized over 10 years. Now, 1 year later (it is December 31st again), your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments she made during the year. (This interest will be income to your aunt and a deduction to the buyer of the house.) To the closest dollar, what is the total amount of interest that was paid during the first year? O $1,966 O $1,644 O $1,840 O $1,726 O none of the other answer options are correct

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