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You have contracted to buy a house for $521,250 paying $104,250 as a down payment and taking a fully amortized 30-year mortgage for the balance

You have contracted to buy a house for $521,250 paying $104,250 as a down payment and taking a fully amortized 30-year mortgage for the balance at a 4.50% annual interest rate?

  1. The bank has offered you a 15-year mortgage, at an interest rate of 4.05%. If you accept this offer, what will your monthly installment be over the next 15 years? (round to the nearest dollar)
  2. How much interest would you save by choosing the 15-year mortgage?

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