A partially amortizing mortgage is made for $50,000 for a term of 10 years. The borrower and lender agree that a balance of 20,000 will remain and be repaid as a lump sum at that time. 1- If the interest rate is 7 percent. what must monthly payments be over the 10-year period 2- the borrower chooses to repay loan after 5 years instead of at the end of year 10, what must the loan balance be:
A partially amortizing mortgage is made for $50,000 for a term of 10 years. The borrower and lender agree that a balance of 20,000 will remain and be repaid as a lump sum at that time. 1- If the interest rate is 7 percent. what must monthly payments be over the 10-year period 2- the borrower chooses to repay loan after 5 years instead of at the end of year 10, what must the loan balance be:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A partially amortizing mortgage is made for $50,000 for a term of 10 years. The borrower and lender agree that a balance of 20,000 will remain and be repaid as a lump sum at that time.
1- If the interest rate is 7 percent. what must monthly payments be over the 10-year period
2- the borrower chooses to repay loan after 5 years instead of at the end of year 10, what must the loan balance be:
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