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The price of a small cabin is $85,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-years fixed at

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The price of a small cabin is $85,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-years fixed at 8.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? Find the monthly payment for the 20-years option. $

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