Assume a $620,000 loan over a 20 year period at a fixed rate of 5.85%. How much would a borrower save by taking the loan out on a full-capital repayment schedule rather than an Interest Rate basis? a. $164,328.81 b. $327,813.04 c. $0 d. $292,186.96
Assume a $620,000 loan over a 20 year period at a fixed rate of 5.85%. How much would a borrower save by taking the loan out on a full-capital repayment schedule rather than an Interest Rate basis? a. $164,328.81 b. $327,813.04 c. $0 d. $292,186.96
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Assume a $620,000 loan over a 20 year period at a fixed rate of 5.85%. How much would a borrower save by taking the loan out on a full-capital repayment schedule rather than an Interest Rate basis?
a. $164,328.81
b. $327,813.04
c. $0
d. $292,186.96
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