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Freddy and Frieda Finance are looking to buy a house. They can comfortably afford a monthly payment of $2500 and

plan to pay $130,000 as a down payment. Help them evaluate some mortgage options.


1. Nautical Bank offers a 30-year fixed rate mortgage with a nominal annual rate of 3.375%. What would be the most expensive house (mortgage loan amount plus down payment) the Finances could afford under this loan? 

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