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A contract amortizes $250,000 over 25 years with monthly payments. The interest rate is 6% AR with monthly compounding. A balloon payment equal to the
A contract amortizes $250,000 over 25 years with monthly payments. The interest rate is 6% AR with monthly compounding. A balloon payment equal to the unpaid principal balance plus any accrued interest is required at the end of year 10. a. What is the level of the required balloon payment? b. How much of the 60th payment is interest versus principal?
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