Question: You pay 2 0 % down on a home with a purchase price of $ 1 8 0 , 0 0 0 . Your bank

You pay 20% down on a home with a purchase price of $180,000. Your bank will loan the remaining balance at 7% APR. You have an option to make annual payments or monthly payments on the loan. Both options have a 30-year payment schedule. What is the difference between the annuity payment paid under the annual plan and that under the monthly plan?

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