Question: A fully amortizing mortgage loan is made for $ 3 2 0 , 0 0 0 at 5 percent interest for 1 5 years. a

A fully amortizing mortgage loan is made for $320,000 at 5 percent interest for 15 years.
a. Calculate the monthly payment for a CPM loan.
b. What will the total of payments be for the entire 15-year period? Of this total, how
much will be the interest?
2| P a g e
c. Assume the loan is repaid at the end of seven years. What will be the outstanding
balance? How much total interest will have been collected by then?

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