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Show all work through financial formulas, and please double check. Using this information: Suppose you currently have $150,000 and you want to buy a house
Show all work through financial formulas, and please double check.
Using this information: Suppose you currently have $150,000 and you want to buy a house which will cost about $1,000,000. You figure you need to have a 20% down payment plus an additional 5% of the loan amount for closing costs. If you invest in stock A, you can earn 7.5% per year.
Question: Assume that you need to pay a monthly payment for your mortgage loan for 30 years, and the monthly rate is 0.3%, how much do you need to pay every month?
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