Mathematics & Statistics
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4.(8 points total) You are thinking of purchasing a house, which costs $600,000.
You need to pay 20% down and borrow the remaining 809 ofthe purchase price.
Your bank offers you a 30-year mortgage that requires annual payments and has
an annual rate of 39. (a) What will be the annual payment? (5 points) (b) What wi
be the loan balance (the amount you still owe) after 15 years? (3 points)
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