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CHECK POINT 1 In Example 1, the $175,500 mortgage was financed with a 30-year fixed rate at 7.5%. The total interest paid over 30 years was approximately $266,220.
a. Use the loan payment formula for installment loans to find the monthly payment if the time of the mortgage is reduced to 15 years. Round to the nearest dollar.
b. Find the total interest paid over 15 years.
c. How much interest is saved by reducing the mortgage from 30 to 15 years?
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