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You Decide to Take Out a 30-Year Mortgage Loan to Buy

Question 15

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You decide to take out a 30-year mortgage loan to buy the home of your dreams. The home's purchase price is $120,000. You manage to scrape together a $20,000 down payment and plan to borrow the balance of the purchase price. Hardy Savings and Loan Association quotes you a fixed annual loan rate of 12 percent. What will your monthly payment be?

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$100,000 x (.12/12) x (1 + .12/12)30 x 1...

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