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Petra Has Two Options to Finance Her Mortgage of $200,000

Question 180

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Petra has two options to finance her mortgage of $200,000. She can pay $1395.40 per month compounded quarterly for 20 years, or $1380.00 at the beginning of each month compounded semiannually for 20 years. Which option offers the better interest rate?

Correct Answer:

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effective rates: 5.8...

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