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Javier buys a house by making a down payment of $65,000.00 and taking out a mortgage for $585,000.00. The term of the mortgage is 4
Javier buys a house by making a down payment of $65,000.00 and taking out a mortgage for $585,000.00. The term of the mortgage is 4 years, and the amortization period is 25 years. Javier will make weekly payments and the mortgage rate is r26) = 3.750%. a) How much are the weekly payments? $ b) If Javier wants to reduce the weekly payments to $400.00, how much would the down payment have to be? $ c) If another bank offers Javier an equivalent mortgage (original down payment, same term, amortization period, payment periods) but with $639.71 weekly payments, what nominal interest rate r26) are they charging? % (Remember, write 3.456 not 0.03456!)
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