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The Ricordi family has just bought a house for $275,000. They have been saving money for...

The Ricordi family has just bought a house for $275,000. They have been saving money for awhile and are able to make a $100,000 down payment. They have chosen a 30-year mortgage from their bank to borrow the balance of the purchase price. The interest rate of the mortage is 6.5%, compounded monthly.

1. What will the Ricordi’s monthly payments be?
2. What is the total interest the Ricordi’s will pay over the full 30-year life of the mortgage?
3. How much of the first payment one month from now is for interest and how much will be applied to the principal of their loan?
4. What is the balance owing on their loan after ten years?
5. After 10 years of payments, how much of their next monthly payment is devoted to interest?

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jeff jeffy answered 3 weeks ago
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