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You are about to take out an amortizing mortgage (term loan) for $430,000 with monthly payments to buy a house. The interest rate is quoted
You are about to take out an amortizing mortgage (term loan) for $430,000 with monthly payments to buy a house. The interest rate is quoted as an APR.
A | B | |
1 | Amount | 430,000 |
2 | Term (years) | 10 |
3 | Quoted interest rate | 0.057 |
Part 1
What is your monthly payment?
Part 2
What is the effective annual interest rate on the loan?
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