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The following two loan questions are giving me difficulty. Can someone please help me? Thanks
1. The Holder family bought a house for $175,000. They paid 20% down and amortized the rest with a 30-year fixed mortgage loan at 4.5% compounded monthly. Find their monthly loan payment.
2. Calculate the total interest paid on a 30-year, 3.9% fixed-rate $200,000 mortgage loan.
Remember that number of compounding periods in a year n = number of payments expected to be made in a year. If you make monthly mortgage payments, then interest on the loan is compounded monthly.
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