homeowner could take out a 15-year mortgage at a 5.25% annual rate on a $295,000...
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homeowner could take out a 15-year mortgage at a 5.25% annual rate on a $295,000 mortgage amount, or she could finance the purchase with a 30-year mortgage at a 6% annual rate. (a) What are the total interest payments over the entire mortgage periods for each option? (b) What is the interest-to-total payment (total interest/total payment) ratio for each option? (c) How much total interest over the entire mortgage periods could she save by financing her home with the 15-year mortgage (to the nearest dollar)? 2
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