A mortgage broker offers to sell you a mortgage loan contract that will pay $900 per month for the next 2¾ years. At that point, the principal balance of $37,886 is due and payable. What should you pay for the contract if you require a return of 7.2% compounded monthly?

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The Answer of A mortgage broker offers to sell you a mortgage loan contract that will pay $900 per month for the next 2¾ years. At that point, the principal balance of $37,886 is due and payable. What should you pay for the contract if you require a return of 7.2% compounded monthly?

A Mortgage Broker Offers to Sell You a Mortgage Loan