Liz and Nick are buying a $725,000 home. They have been approved for a 3.25% APR, 30-year mortgage. They made a 20% down payment and will be closing on March 11. DQuestion 2What is the daily interest?Hint: take your previous answer and divide it by 365.Question 3How much should they expect to pay in prepaid interest at the closing?11

Answered: Image /qna-images/answer/2bd63065-aac8-4a73-85f7-2e8dfe914754.jpg

Answered: Question 2 What is the daily interest?…

Question 2 What is the daily interest? Hint: take your previous answer and divide it by 365. Question 3 How much should they expect to pay in prepaid interest at the closing?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

Liz and Nick are buying a $725,000 home. They have been approved for a 3.25% APR, 30-year mortgage. They made a 20% down payment and will be closing on March 11.

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Step 1: Determine the amount borrowed since there is a down payment made.

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Step 2: Determine the interest on the loan for one year.

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Step 3: Determine the expected payment in prepaid interest

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