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You are purchasing a house for $ 4 0 0 , 0 0 0 . You plan to make a down payment of $ 8
You are purchasing a house for $ You plan to make a down payment of $ and finance the rest with a mortgage. You must choose between two year loan packages, both with annual mortgage payments not monthly:Package # has an annual interest rate of and requires you to pay two points $ Package # has an annual interest rate of but no points.Calculate the annual payment PMT show the annual payments over the year period; then use SUM to calculate the total payments and calculate the IRR to decimal places of each loan package. Identify which loan is a better deal for you and why?
Show in excel please.
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