Question: you borrow for your new home using a loan that charges prepayment equal to 5% of the remaining loam balance at the time the loan

you borrow for your new home using a loan that charges prepayment equal to 5% of the remaining loam balance at the time the loan is retired. the contract rate on the loan is 7.0% and the payments are amortized over a 30 year period. what is the amount of penalty you have to pay if you pay off the loan at the end of 3 years.

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