Answered: A borrower obtains a fully amortizing…

A borrower obtains a fully amortizing loan for $80,000 at 10 percent for 7 year. Payments are monthly. If the loan is CAM (constant amortizing mortgage) loan, what would be the third monthly payment?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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A borrower obtains a fully amortizing loan for $80,000 at 10 percent for 7 year. Payments are monthly. If the loan is CAM (constant amortizing mortgage) loan, what would be the third monthly payment?

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