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Problem 3 Five years ago, you bought a house and paid 1/4 of it as down payment. Your monthly mortgage has been $2,500. Your next
Problem 3 Five years ago, you bought a house and paid 1/4 of it as down payment. Your monthly mortgage has been $2,500. Your next payment, which is the 60th payment is at the end of January and it is time to review your mortgage payment. The current interest rate on your mortgage is 5% (APR, compounded semi- annually). Assume that it is a 25-year mortgage. How much did you pay for your house five years ago? How much will you owe on your mortgage after the 60th payment which will be paid at the end of this month? Over the first five years, how much did you pay in interest expenses
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