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Tom wants to buy a new house. The monthly mortgage payment is $1,200, the annual interest rate is 4.26% and the term is 30 years.

Tom wants to buy a new house. The monthly mortgage payment is $1,200, the annual interest rate is 4.26% and the term is 30 years. After 30 year's payments, he still needs to pay $680,000 to get the title of the house at the end of the 30th year.

How much is this house worth to Tom today? Can you please explain?

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