Question
If Benji had received a loan with 10 year amortization instead of 5 year amortization, but the loan was still due in 5 years (this
If Benji had received a loan with 10 year amortization instead of 5 year amortization, but the loan was still due in 5 years (this is called a "balloon loan"), how much principal would be owed by Benji at the end of 5 years?
| Total Start-Up Costs | $1,100,000 |
| % Financed | 85% |
| Loan Principal | $935,000 |
| Rate | 7% |
| Term (Years) | 5 |
| Amortization (Years) | 5 |
| Loan Monthly Payment | -$18,514.12 |
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Finance A Quantitative Introduction Volume 2
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128027975, 978-0128027974
