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Hannah is planning to purchase her first home. She has spoken to the bank who has advised that she qualifies for a 25 year mortgage

  1. Hannah is planning to purchase her first home. She has spoken to the bank who has advised that she qualifies for a 25 year mortgage of $1,400,000 at an annual percentage rate of 6%. Payments will be made monthly and therefore interest will be compounded monthly. a. What is the effective annual rate on this loan?
    1. Calculate her monthly payment.
    2. Prepare an amortization schedule for the first two months of the loan.

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