Question: Suppose that the loan in Problem 5 permits an additional prepayment of principal on any scheduled payment date. Prepare another amortization schedule that reflects a

Suppose that the loan in Problem 5 permits an additional prepayment of principal on any scheduled payment date. Prepare another amortization schedule that reflects a prepayment of $5000 with the third scheduled payment. How much interest is saved as a result of the prepayment?

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Given PV 60000 i 1052 525 PMT 10000 A balloon payment of 5000 is paidalong with Payment 3 P... View full answer

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