A 30‐year mortgage loan of $700,000 is made for a 100 acre farm in BlackHawk County at an interest rate of 5%. Constant payments are to be made monthly. If the loan was to be repaid fully over 30 years, but after 10 years the landowner hits a jackpot and decides to pay the loan in full, and what will be the yield/return to the investor? (State your answer rounded to 2 decimals and in percentage terms and interest rates are quoted always as example 5.00 or 6.00 )

Answer rating: 100% (QA)

To calculate the yieldreturn to the investor we first need to calculate ... View the full answer