Question: 1. construct a loan amortization schedule for a 30-year, 7.85% loan of $25,000,000. the loan requires equal, end-of-year payments, and interest is compounded monthly. -

1. construct a loan amortization schedule for a 30-year, 7.85% loan of $25,000,000. the loan requires equal, end-of-year payments, and interest is compounded monthly. - what is the total amount of interest paid over the life of the loan?

2. re-construct this amortization schedule assuming that interest is compounded annually. - what total amount of interest is paid over the life of the loan? - what is the difference between those total interest amounts?

3. assume that in sections 1 and 2 above, there is a balloon payment requirement after 15 years. - what is the balloon payment in section 1? - what is the balloon payment in section 2? - what is the difference between these balloon-payment amounts?

b.- 1. construct a loan amortization schedule for a $5,000,000, 3-year loan, made at 7.50% quoted annual rate. interest is compounded daily, and the loan requires equal end-of-period monthly payments. - what is the total amount of interest paid on this loan?

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