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Consider a mortgage for $10,000,000 with a 15 year maturity and an annual interest rate of 7.0%. The mortgage requires regular monthly payments and three
Consider a mortgage for $10,000,000 with a 15 year maturity and an annual interest rate of 7.0%. The mortgage requires regular monthly payments and three balloon payments of $2,000,000 each. The balloon payments are due at the end of year 5, 10, and 15. What is the regular monthly payment that makes this loan fully amortizing by the end of the 15 year term?
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