Question: All work must be shown and no intermediate rounding (7 decimals). PVIFA formula must be shown. Graduated Payment Mortgage The loan is for $150,000 with

All work must be shown and no intermediate rounding (7 decimals). PVIFA formula must be shown.

Graduated Payment Mortgage

The loan is for $150,000 with terms 6%, 30 years. The graduation rate is 7.5% and occurs 3 times.

  1. Calculate the Initial Monthly Payment:
  2. Calculate the Monthly Payments and Loan Balances for years 1-4 by designing an Amortization Table:
  3. Calculate the effective-interest cost of the loan given $1,200 in upfront lender fees:

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