Question
Several years ago, a $2,000,000 fixed rate, monthly amortizing mortgage was issued for 20 years at 5.5% rate. The monthly payment is $13,758. 3.2% prepayment
Several years ago, a $2,000,000 fixed rate, monthly amortizing mortgage was issued for 20 years at 5.5% rate. The monthly payment is $13,758. 3.2% prepayment penalty is applied to the loan balance. It is calculated at $34,130. What is the loan balance at this time? How many payments have already been made? What is the EBC if the loan is pre-paid now?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
