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Barney and Betty are purchasing their first house. They expect to put down $58,000 (gifts from...

  1. Barney and Betty are purchasing their first house. They expect to put down $58,000 (gifts from their wedding, some savings, inheritance from grandparents, and an accident settlement) which will be the 25% down payment their mortgage broker says the bank needs to finance the purchase. They are going to take out a 4.45%, 20-year fixed mortgage on the balance.
    1. How much is the purchase price of the house?

  1. How much will they be financing on the mortgage?

  1. What will their monthly payment amount be?

  1. After 1-year, how much interest will they have paid on the loan?

  1. After 1-year, how much principal will they have paid on the loan?

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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