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Question
a homeowner has been offered three alternative mortgage loans to finance the purchase of a $300,000 house. the interest rate on the first alternative is 8 percent for twentyfive years, and the loan requires a 20 percent down payment. the second mortgage loan is also for twentyfive years with an interest rate of 7 percent but requires a down payment of a third of the cost of the house. the third loan also requires a third down but is for 20 years at 6 percent. what are the annual mortgage payments required by each loan?
Answer
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