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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 $ from your bank to buy a home. The bank offers:
a year fixed rate of compounded monthly.
a year fixed rate of compounded monthly.
You expect that the interest rate will decrease in the near future, therefore you eventually choose the year fixed rate. Then, what will be your mortgage balance after years?
a
$
b
$
c
$
d
$
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