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At the bank, you have underwritten a 10-year mortgage of $20,000,000 that amortizes based on a 30-year, monthly pay schedule with an interest rate of
At the bank, you have underwritten a 10-year mortgage of $20,000,000 that amortizes based on a 30-year, monthly pay schedule with an interest rate of 5.25%. Assuming the borrower wishes to repay the mortgage after 3 years (36 payments) provided a 3% prepayment penalty is also received, what is the approximate amount of the prepayment?
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