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Present Value Annuities Problem Suppose you have been looking to borrow $300,000 to buy a house. A year ago the interest rate you were offered

Present Value Annuities Problem

Suppose you have been looking to borrow $300,000 to buy a house. A year ago the interest rate you were offered by your bank for a 20 year mortgage was around 3.7 %. Today the rate is around 5.2 %. How much higher will your monthly payments be if you take out the mortgage today compared to one year ago? Provide the answer in percentage value, rounded to one decimal place (ex: 8.2% higher).

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