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To purchase studio space, on April 3, 2025 a pianist takes out a 30-year loan of $120,000 at an annual interest rate of 11%. The
To purchase studio space, on April 3, 2025 a pianist takes out a 30-year loan of $120,000 at an annual interest rate of 11%. The first monthly payment is to be made on May 3, 2025; the final payment is scheduled to be made April 3, 2055. The monthly payment is $1,142.79 . [Note: If you use the table you'll get that the monthly payment is $1,142.40, but the table produces an approximation. $1,142.79 is the precise payment.] - a) Calculate the total interest charged over the course of the loan, assuming that nothing but the standard payment is made each month. - b) How much will she owe immediately after making the payment on June 3, 2025? (= the second payment) Round appropriately to the nearest penny. - c) Suppose that as part of that June 3, 2025 payment she pays an extra $325 as an overpayment. Calculate the dollar amount of interest which this saves in the future. Round your answer down to the nearest $10
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