Question: Suppose you are borrowing $ 1 5 0 , 0 0 0 for your new house with interest rate of 1 2 % . Although

Suppose you are borrowing $

150, 000

for your new house with interest rate of

12 % .

Although you will get a

30 -

year mortgage, you plan to prepay the loan by making an additional payment each month along with your regular payment. How much extra must you pay each month if you wish to pay off the loan in

20

years?

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