CAM-Constant Amortizing Mortgage CPM-Constant Payment Mortgage Upload your work as a single Excel file with an amortization table for the CAM and the CPM. You can put the CAM and CPM on the same tab or in different tabs within your Excel file. A fully amortizing CAM loan is made for $125,000 at 11 percent interest for 20 years. a. What will be the monthly payments and remaining loan balances for the first six months? b. What would monthly payments be if the loan were CPM instead? c. If both loans (the CAM and CPM) are repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Which one and why? Use Excel.
CAM-Constant Amortizing Mortgage CPM-Constant Payment Mortgage Upload your work as a single Excel file with an amortization table for the CAM and the CPM. You can put the CAM and CPM on the same tab or in different tabs within your Excel file. A fully amortizing CAM loan is made for $125,000 at 11 percent interest for 20 years. a. What will be the monthly payments and remaining loan balances for the first six months? b. What would monthly payments be if the loan were CPM instead? c. If both loans (the CAM and CPM) are repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Which one and why? Use Excel.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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CAM-Constant Amortizing Mortgage
CPM=Constant Payment Mortgage
4
Upload your work as a single Excel file with an amortization table for the CAM and the CPM. You
can put the CAM and CPM on the same tab or in different tabs within your Excel file.
A fully amortizing CAM loan is made for $125,000 at 11 percent interest for 20 years.
et 33
ASSIGNMENT SUBMISSION
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a. What will be the monthly payments and remaining loan balances for the first six
months?
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b. What would monthly payments be if the loan were CPM instead?
c. If both loans (the CAM and CPM) are repaid at the end of year 5, would the lender
earn a higher rate of interest on either loan? Which one and why? Use Excel.
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