A partially amortizing mortgage is made for $70,000 for a term of 10 years. The borrower and lender agree that a balance
Posted: Sun Jun 05, 2022 7:10 am
A partially amortizing mortgage is made for $70,000 for a term
of 10 years. The borrower and lender agree that a balance of
$22,000 will remain and be repaid as a lump sum at that time.
Required:
a. If the interest rate is 7 percent, what
must monthly payments be over the 10-year period?
b. If the borrower chooses to repay the
loan after five years instead of at the end of year 10, what must
the loan balance be?
of 10 years. The borrower and lender agree that a balance of
$22,000 will remain and be repaid as a lump sum at that time.
Required:
a. If the interest rate is 7 percent, what
must monthly payments be over the 10-year period?
b. If the borrower chooses to repay the
loan after five years instead of at the end of year 10, what must
the loan balance be?