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Consider a R2.25 million loan with a balloon payment of R1 million at loan expiration, fixed-rate mortgage with an 8% interest rate and a 30-year

Consider a R2.25 million loan with a balloon payment of R1 million at loan expiration, fixed-rate mortgage with an 8% interest rate and a 30-year amortization schedule. The lender would charge 5.5 % of the loan value to originate this loan.

i) Show the table representing the mortgage payments from month's 1,2 and 20 for a Constant Payment Mortgage (CPM).

ii) Show the table representing the mortgage payments from month's 1,2 and 20 for a Constant Amortization Mortgage (CAM).

iii) What is the payment that will be due at the end of the 10th year if the borrower decides to end the loan?

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