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You purchased a home on January 1, 2005 with a$100,000 mortgage requiring 30 equal annual payments at 10% interest with the first payment due on
You purchased a home on January 1, 2005 with a$100,000 mortgage requiring 30 equal annual payments at 10% interest with the first payment due on January 1, 2006. The bank sold your mortgage to an investor on January 1, 2012, immediately after receiving your seventh payment. The yield to the investor is 8%.
Determine the bank's overall return on its investment.
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