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2 Ann wants to buy an office building which costs $ 1 , 0 0 0 , 0 0 0 . She obtains a 3

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Ann wants to buy an office building which costs $1,000,000. 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?
(A) $207,385.65
(B) $723,580.11
(C) $794,198.17
(D) $967,779.42
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