An interest-only mortgage is made for $112,000 at 4.5 percent annual interest for 10 years. The lender and borrower agre
Posted: Fri Jul 01, 2022 7:47 am
An interest-only mortgage is made for $112,000 at 4.5 percentannualinterest for 10 years. The lender and borrower agree that monthlypaymentswill be constant and will require no loan amortization.a. What will the monthly payments be? b. What will be the loan balance after four years? c. If the loan is repaid after four years, what will be the yieldto thelender? d. Instead of being repaid after four years, what will be the yieldif theloan is repaid after 10 years?