1. Lily borrowed a loan of $1,000,000 at an interest rate of 5% amortized over 30...
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1. Lily borrowed a loan of $1,000,000 at an interest rate of 5% amortized over 30 years by annual payments. The first 15 payments were made on time but the next three were defaulted. A new agreement was then made to pay the remaining obligation in 12 equal annual payments at 6%, the first payment being made 1 year after the 3rd defaulted payment. (a) Calculate the amount of the principal repaid in the 1st rescheduled payment. (b) Construct the entire amortization schedule for Lily, without and with the defaulted payments. 1. Lily borrowed a loan of $1,000,000 at an interest rate of 5% amortized over 30 years by annual payments. The first 15 payments were made on time but the next three were defaulted. A new agreement was then made to pay the remaining obligation in 12 equal annual payments at 6%, the first payment being made 1 year after the 3rd defaulted payment. (a) Calculate the amount of the principal repaid in the 1st rescheduled payment. (b) Construct the entire amortization schedule for Lily, without and with the defaulted payments.
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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