Dan got a 1 0 year Fixed Rate Mortgage for $ 1 0 0 , 0 0

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Question:

Dan got a

10

year Fixed Rate Mortgage for $

100, 000 .

The loan has constant annual payments and an annual interest rate of

5 % .

There are no closing costs.

Suppose Dan prepays the loan in year

4 .

Compute the IRR for Dan's loan in the following cases:

.

Fully Amortizing

.

Partially Amortizing where the final balance is B

_10 =

50, 000

.

Interest Only

.

Negatively Amortizing where the payment is PMT

=

1, 000

.

Negatively Amortizing where the payment is PMT

=

0

Posted Date: May 19, 2024 03:00 AM

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Dan got a 1 0 year Fixed Rate Mortgage for $ 1 0 0 , 0 0

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