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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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