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Mathematics, 12.05.2021 20:10 AreYouMyNewDad
A person who filed bankruptcy in the past is able to get a 30-year mortgage loan at a rate that is 5%
higher than what they could have received if they had not filed. The interest rate this person pays on a
$150,000 loan is 13.5%, compounded monthly
Assume the person could have received the lower interest rate on the loan and saved all of the difference
in the payments for the first 10 years of the loan. If this person invested this total amount in an account
paying compound interest at the rate of 2.5%, how much money would have accumulated in interest by
the time the mortgage is paid off?
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