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When purchasing a home, one takes out a 30-year annual-payment mortgage. The interest rate for the mortgage is 5% per year. The annual payment on
When purchasing a home, one takes out a 30-year annual-payment mortgage. The interest rate for the mortgage is 5% per year. The annual payment on the mortgage is $12,000. You just made a payment and have decided to pay off the mortgage by repaying the outstanding balance. What is the payoff amount if you have lived in the house for 12 years (so there are 18 years left on the mortgage)?
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