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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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