Question: #3 please and the same question but with $5,673,555 as the borrowed amount CHAPTER 18 Mortgage Mechanics EXERCISES Define the following terms: interest-only loan, amortizing

#3 please and the same question but with $5,673,555 as the borrowed amount

CHAPTER 18 Mortgage Mechanics EXERCISES Define the following terms: interest-only loan, amortizing loan, balloon payment. 2. Construct an amortization schedule for a loan with the following charac- teristics. Loan amount $10,000; term 5 years; interest rate-8 percent: annual payments. . Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan is 8.25 percent, and the term of the loan is 15 years. Answer the following questions about this loan: a. What is the monthly payment necessary to amortize this loan? b. What is the balance on the loan at the end of month 36? c. How much interest will Ron pay in month 37? d. How much principal will Ron pay in month 37? e. How much principal will Ron pay in the fourth year of this loan (pay- ments 37 through 48)? 4. Suppose the loan in question 3 required 2 discount points at the time of origination. a. If Ron keeps this loan for the full term, 180 months, what is his effective interest rate? b. If Ron prepays the loan at the end of month 48, what is his effective

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