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27-05-2023
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Suppose you accept your parents' offer of a 2007 BMW M6 convertible, but that's not the kind of car you want. Instead, you sell the car for $61,000, spend $11,000 on a used Corolla, and use the remaining $50,000 as a down payment for a house. The bank offers you a 30-year loan with equal monthly payments and an interest rate of 6% per year, and requires a 20% down payment. How much can you borrow, and what will be the payment on the loan?

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