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The price of a small cabin is $55 comma 00055,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-year

The price of a small cabin is

$55 comma 00055,000.

The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-year fixed at

9.59.5%

or 30-year fixed at

9.59.5%.

Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option?

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