Question
2. Ann wants to buy an office building which costs $2,000,000. She obtains a 30 year fully amortizing fixed rate mortgage with 80% LTV, an
2. Ann wants to buy an office building which costs $2,000,000. She obtains a 30 year fully amortizing fixed rate mortgage with 80% LTV, an annual interest rate of 4%, with monthly compounding and monthly payments. Ann has a balloon payment due 5 years after she gets the loan. If Ann pays the required monthly payment for 5 years, how much is her balloon payment?
ANSWER: $1,447,160.21
Pleas, I need clear step in how to get this answer: I will like to know how can i calculate this in the financial calculator not in excel)
I will really appreciate it ! thank you.
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