(Answered) Questions a what is the normal order of application of

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Questions: a. What is the normal order of application of payments in a mortgage?

b. How does this order affect the remaining balance after an annual $1 million payment is made (on time) on a mortgage with 10% simple annual interest and an outstanding balance of $8 million just prior to the payment (i.e., what is the new balance after this payment is made)?

c. Suppose the payment was late by one day, and the loan provisions call for a late-payment penalty fee of $10,000?

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