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Karen and Keith have a $400,000, 30-year loan (360-month) mortgage. The mortgage has a nominal rate of 3.6% convertible monthly. Mortgage payments are made at

Karen and Keith have a $400,000, 30-year loan (360-month) mortgage. The mortgage has a nominal rate of 3.6% convertible monthly. Mortgage payments are made at the end of each month. What is the monthly payment? Use the retrospective method to find the outstanding loan balance immediately following the 60th payment. Then, use the prospective method to find the outstanding loan balance immediately following the 60th payment.

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