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You purchase a home for $120,000. You obtain a 30 year loan from Bank Second, paying 20% down, with your loan to be paid off
You purchase a home for $120,000. You obtain a 30 year loan from Bank Second, paying 20% down, with your loan to be paid off in monthly payments.
a. If the annual interest rate is 8.5% and your first payment is in February, what is your outstanding principal balance after your April payment?
b. How much interest would you save by obtaining a 15 year loan versus a 30 year loan? Show all work.
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Fundamentals Of Financial Institutions Management
Authors: Marcia Cornett, Anthony Saunders
1st Edition
0256253676, 9780256253672
