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1. Sam borrows $1,000,000 by a mortgage with annual paymentsover 30 years at a rate of 9.75% per annum interest. What are hisannual payments? what is the remaining balance on his loan after 5years? 15 years?Suppose that 10 years after Sam takes out the loan, the mortgageis sold to an investor who requires a 10.5% rate of return oninvestments, how much is the investor willing to pay for theloan?
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