EAR A house is for sale for $250,000 - 41706

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Price: $10.00
  • From: Finance,
  • Posted on: Wed 29 Jan, 2014
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Request Description

 

A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of $50,000, you can obtain a loan with a 5% rate of interest. What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?

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EAR house is for sale for $250,000 Solution.xlsx
EAR house is fo...