Comprehensive Review Problem 4-21

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. Required:

a. What will monthly payments be if

(1) The loan is fully amortizing?

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

(3) It is a nonamortizing, or interest-only loan?

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