What are the advantages to borrowers and risks to lenders

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What is partial amortization?

A borrower obtains a fully amortizing CPM loan for $125,000 at 11 percent interest for 10 years. What will be the monthly payment on the loan? If this loan had a maturity of 30 years, what would be the monthly payment?

Problems:-
What are the major differences between the four CPM loans discussed? What are the advantages to borrowers and risks to lenders for each? What elements do each of the loans have in common?

Reference no: EM131327372

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