Question: Problem 4-18 A borrower and a lender agree on a $265,000 loan at 7 percent interest. An amortization schedule of 25 years has been agreed

Problem 4-18

A borrower and a lender agree on a $265,000 loan at 7 percent interest. An amortization schedule of 25 years has been agreed on; however, the lender has the option to call the loan after five years.

Required:

If called, how much will have to be paid by the borrower at the end of five years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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