A bank lends you $250,000 (loan amount is $250,000) at a 7.25% nominal interest rate. The loan requires monthly interest-only payments for 6 months, followed by equal monthly payments of principal and interest based on a 25 year amortization schedule. The loan matures in 5 years and a balloon payment is due at that time. What is the total interest dollar amount paid by the end of month 60? Round all dollar calculations and your final answer to the nearest penny.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
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A bank lends you $250,000 (loan amount is $250,000) at a 7.25% nominal interest rate. The loan requires monthly interest-only payments for 6 months, followed by equal monthly payments of principal and interest based on a 25 year amortization schedule. The loan matures in 5 years and a balloon payment is due at that time. What is the total interest dollar amount paid by the end of month 60? Round all dollar calculations and your final answer to the nearest penny.

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