A fully amortizing mortgage loan is made for 5 100,000 at 8 percent interest for 20 years.

Question:

a. Calculate the monthly payment for a CPM mortgage.

b. What will the total of payments be for rhe emire 20-yea r period? Of this total how much \\'iIl be interest?

C. Assume the loan is repaid at the end of 8 years. What will be the oUlstanding balance? How much total interest will have been collected by then?

d. The borrower now chooses to reduce the loan balance by S5,000 at the end of year 5,

(2) Assume the loan maturity will not be reduced. What will the new payments be?

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Real Estate Finance And Investments

ISBN: 9780073524719

13th Edition

Authors: William Brueggeman, Jeffrey Fisher

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Question Posted: Jul 26, 2024 09:02 AM

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A fully amortizing mortgage loan is made for 5 100,000 at 8 percent interest for 20 years.

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Real Estate Finance And Investments

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