A Floating Rate Mortgage Loan Is Made For 105 000 For A 30 Year Period At An Initial Rate Of 12 Percent Interest Howev 1 (24.77 KiB) Viewed 113 times
A floating rate mortgage loan is made for $105,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $840. Required: a. What will be the loan balance at the end of year 1? b. If the interest rate increases to 13 percent at the end of year 2, how much interest will be accrued as negative amortization in year 2 and year 5 if the payment remains at $840? Complete this question by entering your answers in the tabs below. Required A Required B What will be the loan balance at the end of year 1? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Loan balance Required A Required B >
Required A Required B If the interest rate increases to 13 percent at the end of year 2, how much interest will be accrued as negative amortization in year 2 and year 5 if the payment remains at $840? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Loan balance in year 2 Interest accrued - Year 1 Interest accrued - Year 5 < Required A Required B
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