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Demi Weafer wishes to purchase a(n) $ 815,000 house. She has accumulated a $ 175,000 down payment, but she wishes to borrow $ 640,000 on
Demi Weafer wishes to purchase a(n) $ 815,000 house. She has accumulated a $ 175,000 down payment, but she wishes to borrow $ 640,000 on a 20-year mortgage. For simplicity, assume annual mortgage payments occur at the end of each year and there are no loan fees.
1a What are Weafer's annual payments if her interest rate is (a)8%,(b)12%,(c)16% compounded annually?
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