Question
Loan Amount: $10,000,000.00 Interest Rate: 6.75% Amortization: 30 years Term: 10 years 2. Assume that the amortization is 25 years instead of 30 years (again
Loan Amount: $10,000,000.00
Interest Rate: 6.75%
Amortization: 30 years
Term: 10 years
2. Assume that the amortization is 25 years instead of 30 years (again interest only for the first three years).
a. What would the ADS be in the first year?
b. What would the ADS be in year 5?
c. What would the balance of the loan be at maturity?
d. How much more principal would be paid using a 25 year amortization versus 30 year amortization?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
