Question: 1. A borrower obtains a fully amortizing CPM loan for $125,000 at 6 percent interest for 10 years. Required: a. What will be the

1. A borrower obtains a fully amortizing CPM loan for $125,000 at

1. A borrower obtains a fully amortizing CPM loan for $125,000 at 6 percent interest for 10 years. Required: a. What will be the monthly payment on the loan? b. If this loan had a maturity of 30 years, what would be the monthly payment? 2. An interest-only mortgage is made for $80,000 at 6 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization. Required: a. What will the monthly payments be? b. What will be the loan balance after five years?

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