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You have just purchased a home and taken out a $ 520000 mortgage. The mortgage has...

You have just purchased a home and taken out a $ 520000 mortgage. The mortgage has a 30​-year term with monthly payments and an APR​ (with semi-annual​ compounding) of 7.44 %. ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year?
b. How much will you pay in​ interest, and how much will you pay in​ principal, during the twentieth year​ (i.e., between 19 and 20 years from​ now)?

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 month ago
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