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A bank lends you $ 2 5 0 , 0 0 0 ( loan amount is $ 2 5 0 , 0 0 0 )

A bank lends you $250,000(loan amount is $250,000) at a 7.5% nominal interest rate. The loan requires monthly interest-only payments for 6 months, followed by equal monthly payments of principal and interest based on a 25 year amortization schedule. The loan matures in 5 years and a balloon payment is due

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