What is the difference in the monthly payment amounts

Reference no: EM133715769

Question: Consider two loans of $100,000, both with fixed monthly payments.

1. APR = 6%, 30 years, full amortization.

2. APR = 6%, 30 years, only $50,000 is amortized. (This means that after 30 years, the borrower has paid down $50,000 and the remaining balance is $50,000.)

What is the difference in the monthly payment amounts? i.e., Payment1 minus Payment2?

Reference no: EM133715769

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