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A $100,000 Mortgage at 8

Question 13

Multiple Choice

A $100,000 mortgage at 8.5% over thirty years has a monthly payment of $768.91. After the borrower makes the twenty-fourth payment the prevailing interest rate on a similar mortgage is now 9.0%. Calculate the value of the remaining cash flows.


A) $94,195
B) $96,177
C) $98,421
D) $100,456

Correct Answer:

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