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Question: Consider a $2 million, 8% CPM with monthly payments. What is the regular monthly payment and the balloon payment amounts in each of the following cases?

a. Fully amortizing, 25-year loan

b. 25-year amortization, 10-year balloon

c. 15-year amortization, 10-year balloon

d. What are the major disadvantage and advantage of the 15-year amortization-rate 10-year loan in part (c) as compared to the 25-year amortization-rate 10-year loan in part (b)?

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  • Category:- Basic Finance
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