Suppose you take out a 30 year mortgage for $ 175000 at 9% interest. The...
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Suppose you take out a 30 year mortgage for $ 175000 at 9% interest. The monthly payments on this loan are $ 1408.09.
If you pay an extra 10% per month on your mortgage, how soon will you pay off the loan? New length in years =
How much will you save in interest by making the extra payments? Saving =
If you put $ 1408.09 per month into an annuity earning 10.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years? Extra savings =
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