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You want to buy a $160000 home. You plan to pay $48000 as a down payment, and take out a 20 year loan at 5.75%

You want to buy a $160000 home. You plan to pay $48000 as a down payment, and take out a 20 year loan at 5.75% interest for the rest.

a) What is the amount of the payment?

$

b) If the bank charges 3 points on the loan, what is the amount charged for points?

$

c) If the bank charges 3 points on the loan, what is the true interest rate?

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