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You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year fixed-rate mortgage with monthly payments and an initial balance
You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year fixed-rate mortgage with monthly payments and an initial balance of $800,000. The interest rate on the mortgage is 6% APR. The mortgage is exactly 18.5 years old and you just made a payment. (a) How much cash will you have from the sale once you pay off the mortgage? (b) How much did you pay in interest the past six months of the loan?
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