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Mathematics, 05.12.2019 11:31 usabmx34
Adam smith bought a home with a 13% adjustable rate mortgage for 20 years. he paid $11.72 monthly per thousand on his original loan. at the end of 4 years he owes the bank $75,000. now that interest rates have gone down to 10%, the bank will renew the mortgage at this rate or adam can pay $75,000. adam decides to renew and will pay $9.66 monthly per thousand on this loan. you can ignore the small amount of principal that has been paid.
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