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Please type the answer by computer, so i can see it clearly, thank you!!! A negative amortizing mortgage is made for $4,000,000 for a term
Please type the answer by computer, so i can see it clearly, thank you!!!
A negative amortizing mortgage is made for $4,000,000 for a term of 20 years at 5% interest rate. The borrower and lender agree the amount of balloon payment to be $4,400,000. a) Calculate the monthly payment. (4 marks) b) What will the loan balance be if the borrower chooses to repay the loan after 10 years instead of at the end of year 20? (6 marks) c) Suppose instead of a balloon payment of $4,400,000 the borrower agrees to make a monthly payment $13,000 for the above mortgage loan. Calculate the amount of balloon payment. (8 marks)
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