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1) 2) A borrower and a lender agree on a $205,000 loan at 7 percent interest. An amortization schedule of 25 years has been agreed
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A borrower and a lender agree on a $205,000 loan at 7 percent interest. An amortization schedule of 25 years has been agreed on; however, the lender has the option to "call" the loan after five years. Required: If called, how much will have to be paid by the borrower at the end of five years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) A mortgage loan in the amount of $100,000 is made at 6 percent interest for 20 years. Payments are to be monthly in each part of t problem. Required: a. What will monthly payments be if (1) The loan is fully amortizing? (2) It is partially amortizing and a balloon payment of $50,000 is scheduled at the end of year 20 ? (3) It is a nonamortizing, or "interest-only" loan? (4) It is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20 ? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What will be the monthly payment if (1) The loan is fully amortizing? (2) It is partially amortizing and a balloon payment of $50,000 is scheduled at the end of year 20 ? (3) It is a nonamortizing, or "interest-only" loan? (4) It is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20 ? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)Step by Step Solution
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