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Assume you plan to borrow $ 4 0 0 , 0 0 0 from your bank to buy a home. The bank offers: a 5

Assume you plan to borrow $400,000 from your bank to buy a home. The bank offers:
a 5-year fixed rate of 6.05%, compounded monthly.
a 3-year fixed rate of 5.75%, compounded monthly.
You expect that the interest rate will decrease in the near future, therefore you eventually choose the 3-year fixed rate. Then, what will be your mortgage balance after 3 years?
a.
$379,325.89
b.
$321,598.59
c.
$365,056.12
d.
$452,321.21

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