You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your mortgage bank will lend you the money at a
Posted: Sun Jul 03, 2022 12:55 pm
You need a 30-year, fixed-rate mortgage to buy a new home for$290,000. Your mortgage bank will lend you the money at a 5.85% APR(semi-annual) for this 360-month loan. However, you can affordmonthly payments of only $1,300, so you offer to pay off anyremaining loan balance at the end of the loan in the form of asingle balloon payment.
How large will this balloon payment have to be for you to keepyour monthly payments at $1,300? (Round yourintermediate calculations to 5 decimal places. Round the finalanswer to 2 decimal places. Omit $ sign inyour response.)
How large will this balloon payment have to be for you to keepyour monthly payments at $1,300? (Round yourintermediate calculations to 5 decimal places. Round the finalanswer to 2 decimal places. Omit $ sign inyour response.)