A mortgage loan in the amount of $100,000 is made at 6 percent interest for 20 years. Payments are to be monthly in each part of this problem.

ANSWERED

a. What will monthly payments be if

(1) The loan is fully amortizing? PMT = $716.43

(2) It is partially amortizing and a balloon payment of $50,000 is scheduled at the end of year 20? PMT = $608.22

(3) It is a nonamortizing, or "interest-only" loan? PMT = $500

(4) It is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20? PMT = $391.78

NEEDS TO BE ANSWERED

Assuming that 3 points are paid at closing and the 20-year loan is prepaid at the end of year 5, what will be the effective rate of interest for each loan in parts a (1) through a (4)?(Do not round intermediate calculations.Round your final answers to 2 decimal places.)

1. Effective Rate if fully amortizing
2. Effective Rate if partially amortizing and a balloon payment of $50,000 is scheduled at the end of year 20?
3. Effective Rate if nonamortizing, or "interest-only" loan
4. Effective Rate if It is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20?