Question: Please type the answer by computer, so i can see it clearly, thank you!!! A $4,000,000 negative amortizing mortgage with a 20-year term and a

Please type the answer by computer, so i can see it clearly, thank you!!!

A $4,000,000 negative amortizing mortgage with a 20-year term and a 5% interest rate is obtained. The balloon payment is set at $4,400,000 by the borrower and the lender.

Question:

1(a) Calculate the monthly payment.

1(b) What will the loan balance be if the borrower chooses to repay the loan after 10 years instead of at the end of year 20?

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