Question: Solve the below with excel formulas You borrow a Graduated Payment Mortgage ( GPM ) of $ 4 0 0 , 0 0 0 with

Solve the below with excel formulas
You borrow a Graduated Payment Mortgage (GPM) of $400,000 with monthly payments and 15-year term. The annual interest rate is 4%. The lender allows you to pay only 0.5 monthly PMT for the first 5 years and pay full monthly PMT thereafter. In other words, your payment factors are as follows: month 1-month 60: 50%; and month 61- month 180: 100%. Suppose that the origination cost of the loan is $5,000, please answer the following q
2. What is your annual effective cost of the GPM if you hold the loan for an entire term?

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