Firm has a $500,000 loan with 9% APR (compounded monthly)
Loan is 5-yr based on a 15-yr amortization, meaning loan payments will be calculated as if you take 15 years to pay off the loan, but actually must do so in 5 yr.
To do this, you make 59 equal payments based on the 15-yr amortization schedule and then make a final 60th payment to pay remaining balance.
1. What will the monthly payments be?
2. What will the final payment be?
1 answer