Order these loans from highest monthly payment to lowest monthly payment. (Enter

Question

Order these loans from highest monthly payment to lowest monthly payment. (Enter 1 as your answer to designate loan with highest payment, 2 as loan with second highest payment, and so on up to 5 to designate loan with lowest payment.) Each of the following loans is for $300,000 and is a fixed rate mortgage with a 3.5% interest rate. Balloon payment of S500,000 is due at maturity Balloon payment of $250,000 is due at maturity The loan is fully repaid at maturity Interest-only payments for the duration of the loan Balloon payment of S100,000 is due at maturity

Explanation / Answer

Order of highest monthly payment to lowest monthly payment of loan amortization

1) Balloon payment of 100,000 is due at maturity

2) Balloon payment of 250,000 is due at maturity

3) Interest only payments for the duration of the loan

4) Balloon payment of 500,000 is due at maturity

5) The loan is fully repaid at maturity

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