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Suppose that you plan to buy a $500,000 house. You have saved enough money to make a down payment of 10% and will finance the

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Suppose that you plan to buy a $500,000 house. You have saved enough money to make a down payment of 10% and will finance the balance using a 30-year fixed rate loan from your old college roommate who is now a mortgage banker. The current mortgage rate on such loans is 6 113% (APR). (a) Compute the monthly payment using the PMT function in Excel and also using the equation for the present value of an annuity. Next, prepare an amortization table like the one we prepared in class. Fully amortize the loan by going out to the last payment

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