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18-01-2024
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If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford?

A) $178,000
B) $186,000
C) $194,000
D) $202,000

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