A mortgage note contains the following terms: "For value received, the undersigned promises to pay to the holder of this note the principal sum of $3,034,900.00 with interest at the rate of 8.5% per annum on the unpaid balance until paid. Interest and principal in the amount of $22,248.68 are payable monthly on the last day of each month until the entire indebtedness has been paid.

It is also known that on December 31, X6, the outstanding balance on the mortgage was $2,969,547.74. 

What was the original term of the loan? 

Out of the total payments in X9, what percentage will represent interest and what percentage will represent a reduction of principal? 

Answer rating: 100% (QA)

To determine the original term of the loan we need to calculate the present value of the monthly pay... View the full answer