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In 1980 Tara purchased a home at a price of $152,900. She made a 20% cash down payment and borrowed the rest with a 30-year
In 1980 Tara purchased a home at a price of $152,900. She made a 20% cash down payment and borrowed the rest with a 30-year fixed-rate mortgage with monthly payments at an APR of 16.04% compounded monthly. A. What was her monthly payment? B. How much of the 1st monthly payment went towards principal?
C. Suppose it is 22.5 years later and Tara has made 75% of the payments (i.e., she just made her 270th payment). What percent of the original $122,320 principal has she paid?
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