A partially amortizing mortgage is made for $67,560 for a term of 14 years. The borrower and

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A partially amortizing mortgage is made for $67,560 for a term of 14 years. The borrower and lender agree that a balance of $21,400 will remain and be repaid as a lump sum at that time.

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a. If the interest rate is 7 percent, what must monthly payments be over the 10-year period?

b. If the borrower chooses to repay the loan after five years instead of at the end of year 10, what must the loan balance be?

Related Book For answer-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Posted Date: May 06, 2024 05:32 AM

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A partially amortizing mortgage is made for $67,560 for a term of 14 years. The borrower and

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a To calculate the monthly payments over the 10year period we can use the formula for calculating th... View the full answer

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