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On March 1, You Borrow $239,000 to Buy a House

Question 149

Multiple Choice

On March 1, you borrow $239,000 to buy a house. The mortgage rate is 7.75%. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on April 1. How much of
The third payment applies to the principal balance? (Assume that each month is equal to 1/12 of a
Year.)


A) $418.53
B) $421.23
C) $423.95
D) $1,540.84
E) $1,543.54

Correct Answer:

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