A) What is the payment per month on this loan for the first month, so the interest only?

B) What is the difference between the payment in month 61 and month 60 so what is the difference once the loan starts ammortizing and the principal is being paid too

C) What share of the principal remains outstanding at the end of month 120?

D) Why would borrowers choose to take on a loan like this, (interest only loan) and what benefits does it pose over a traditional conventional loan?

Given Data

Loan amount $2,500,000

Annual Interest Rate 5.5%

Number of Periods 20 years

Monthly Payments (12)

Amortization 5 years interest only; 15 years amortizing the outstanding balance