Fixed-rate loan-what is the monthly payment

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Reference no: EM132063901

A monthly amortizing, $ 500,000 fixed-rate loan amortizes fully in 25 years and has a contract rate of 5%. Total initial friction costs equal $ 4,000.

• What is the monthly payment?

• The loan is pre-paid after 5 years. What is the loan balance?

Reference no: EM132063901

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