Question: Help Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to cover the rest.
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Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to cover the rest. For the home they want this will require a mortgage of $450,000 to cover the remaining amount and they're not sure whether they could afford the monthly loan payments. The bank has offered them a mortgage interest rate of 5.15%, compounded semi-annually. How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? [Blank-1] What is the total amount of interest that would be paid to the lender after 25 years of payments? [Blank-2] Blank \# 1 A Blank \# 2 A What if Aya and Sakura could only afford a monthly payment of $2,000 ? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same? [Blank-1] What is the total amount of interest that would be paid to the lender over 25 years? [Blank-2] Blank \# 1 Blank \# 2
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