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You purchase a home with a 5 % / year fixed - rate, 3 0 - year mortgage. Interest is compounded monthly. The amount borrowed
You purchase a home with a year fixedrate, year mortgage. Interest is compounded monthly. The amount borrowed is $ Every three months, you make an additional quarter payment which is used to pay off principal eg at EOM payment A at EOM payment A at EOM payment A How long will it take to pay off the mortgage? Include a cash flow diagram in your written work. Hints: The present worth of the sequence of payments must equal the amount borrowed. You can divide the payments into three parts: a uniform series paid monthly, a uniform series paid quarterly, and a single final payment that may be smaller than the typical payment.The answer is an integer. You must enter the exact answer.
B what is the total amount of interest paid over the life of the loan?
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