Consider a 15-year, 9% mortgage for $200,000 with annual payments that are structured in the following way: for the first five years the payment is equal to just one third of the accrued interest for the respective year, for the remaining 10 years the payment assumes full amortization of the outstanding mortgage balance over the remaining term of the loan. Develop an amortization table for this loan.
Consider a 15-year, 9% mortgage for $200,000 with annual payments that are structured in the following way: for the first five years the payment is equal to just one third of the accrued interest for the respective year, for the remaining 10 years the payment assumes full amortization of the outstanding mortgage balance over the remaining term of the loan. Develop an amortization table for this loan.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 41P
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1.) Consider a 15-year, 9% mortgage for $200,000 with annual payments that are structured in the following way: for the first five years the payment is equal to just one third of the accrued interest for the respective year, for the remaining 10 years the payment assumes full amortization of the outstanding mortgage balance over the remaining term of the loan. Develop an amortization table for this loan.
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