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A borrower and a lender agree on a $230,000 loan at 5 percent interest. An amortization schedule of 25 years has been agreed on; however,
A borrower and a lender agree on a $230,000 loan at 5 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.) Balance at the end of 5 years A builder is offering $129,564 loans for his properties at 9 percent for 25 years. Monthly payments are based on current market rates of 9.5 percent and are to be fully amortized over 25 years. The property would normally sell for $140,000 without any special financing. Required: a. At what price should the builder sell the properties to earn, in effect, the market rate of interest on the loan? Assume that the buyer would have the loan for the entire term of 25 years. Complete this question by entering your answers in the tabs below. Required A At what price should the builder sell the properties to earn, in effect, the market rate of interest on the loan? As buyer would have the loan for the entire term of 25 years. (Do not round intermediate calculations. Round your to the nearest whole dollar amount.) Sale value
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