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You are thinking of purchasing a house. The house costs $ 2 5 5 0 0 0 . You have $ 4 5 0 0

You are thinking of purchasing a house. The house costs $ 255000. You have $ 45000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 25-year mortgage that requires annual payments and has an interest rate of 7% per year. What will be your annual payment if you sign this mortgage?

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