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Suppose that you wish to buy a new home that will cost you $350,000. Bank A is willing to lend you $330.000 at 7% APR,
Suppose that you wish to buy a new home that will cost you $350,000. Bank A is willing to lend you $330.000 at 7% APR, paid monthly, at the end of each month, over 30 years. You tell Bank A you can only afford to make monthly payments of $2,000 per month. If Bank A still is willing to offer a 30 year fully amortizing mortgage at 7%, paid monthly, at the end of each month, how much will it lend to you today
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