Question: 5 . A fully amortizing CAM loan is made for $ 1 2 5 , 0 0 0 at 1 1 percent interest for 2

5. A fully amortizing CAM loan is made for $125,000 at 11 percent interest for 20 years.
a. What will be the monthly payments and remaining loan balances for the first six months?
b. What would monthly payments be if the loan were CPM instead?
c. If both loans (the CAM and CPM) are repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Which one and why? Use Excel.

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