How much are home owners paying in annual mortgage interest

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Reference no: EM13810327

Suppose home owners owe $5.5 trillion in mortgage loans.

(a) If the mortgage interest rate is 5 percent, approximately how much are home owners paying in annual mortgage interest? $? Billion

(b) If the interest rate drops to 4 percent, by how much will annual interest payments decline? Interest decline of $? Billion

Reference no: EM13810327

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