Question
A 30-year mortgage loan for $270,000 with a fixed annual interest rate of 6% has monthly payments structured in the following way. During the first
A 30-year mortgage loan for $270,000 with a fixed annual interest rate of 6% has monthly payments structured in the following way. During the first 10-year period, payments cover only the required interest amount but no principal reduction takes place (interest-only). During the second 10-year period, monthly payments are computed based on a 30-year amortization period (partial amortization). During the third 10-year period, monthly payments are computed based on the premise of full amortization. What is the monthly payment during the third 10-year period?
A. | Between $2,300 and $2,450 | |
B. | Between $2,450 and $2,600 | |
C. | Between $2,600 and $2,750 | |
D. | Between $2,750 and $2,900 | |
E. | Between $2,900 and $3,050 | |
F. | Between $3,050 and $3,200 | |
G. | Between $3,200 and $3,350 | |
H. | Between $3,350 and $3,500 |
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