Question: Answer the questions below. Show all work. Loan Amount: $10,000,000.00 Interest Rate: 6-3/4% Amortization: 25 years Term: 10 years Assume the above loan is interest

Answer the questions below. Show all work.

Loan Amount: $10,000,000.00

Interest Rate: 6-3/4%

Amortization: 25 years

Term: 10 years

Assume the above loan is interest only for the first three (3) years.

  1. What would the ADS be in the first year?
  2. What would the ADS be in year 5?
  3. What would the balance of the loan be at maturity?
  4. How much more principal would be paid using a 25 year amortization versus 30 year amortization?

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