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You are considering buying a $200,000 house with a 5% down payment, a 30-year mortgage, a fixed annual rate of 4.5%, and monthly payments. a.

You are considering buying a $200,000 house with a 5% down payment, a 30-year mortgage, a fixed annual rate of 4.5%, and monthly payments.

a. What is the monthly payment? What is the monthly payment times 12?

b. What is the annual payment assuming payments are made annually instead of monthly?

c. Which would a borrower prefer? Why?

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