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How much will have to be paid by borrower

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1. What is negative amortization?

2. A borrower and lender agree on a $200,000 loan at 10 percent interest. An amortization schedule of 25 years has been agreed on; however, the lender has the option to "call" the loan after 5 years. If called, how much will have to be paid by the borrower at the end of 5 years?

Reference no: EM131327417

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