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You are interested in living near Biola for generations to come. You find a $1,098,888 home...

You are interested in living near Biola for generations to come. You find a $1,098,888 home near the park. Assuming you put 20% down, how much interest would you pay during month 2? Assume you receive a 30 year fixed mortgage, paid monthly, with a rate of 3.75%.

Group of answer choices $2,847.33 $2,747.22 $2,945.09 $2,993.41

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Answer #1
A Total purchase Price of House 1098888
B Downpayment(20%) 219777.6
Amount Of Loan(A-B) 879110.4
Yearly Rate of Interest = 3.75%
Monthly Interest Rate = 3.75%/12
Monthly Interest Rate = 0.3125%
Interest amount = Amount of Loan * Rate of Interest
Interest amount = 879110.4*0.3125%
Interest Amount = $2747.22
Hence the Correct answer is B. $2747.22
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