What will you pay as monthly mortgage payments

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You have secured a loan from your bank for two years to build your home. The terms of the loan are that you will borrow $175,000 now and an additional $125,000 in one year. Interest of 9 percent APR will be charged on the balance monthly. Since no payments will be made during the 2-year loan, the balance will grow. At the end of the two years, the balance will be converted to a traditional 20-year mortgage at a 7 percent interest rate.

What will you pay as monthly mortgage payments (principal and interest only)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

PMT $________

Reference no: EM13927807

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