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A Couple Purchases a $400,000 Home by Paying $150,000 Cash

Question 24

Multiple Choice

A couple purchases a $400,000 home by paying $150,000 cash and financing the rest with a mortgage.They make weekly mortgage payments of $400,first payment made one week after the mortgage loan is taken out.The mortgage rate is j2 = 7%,locked in for 5-years.What is the couple's equity when the mortgage renews? (Answer to the nearest dollar)


A) $228,602
B) $148,963
C) $235,104
D) $171,398

Correct Answer:

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