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2. You want a 15-year fixed rate mortgage for $90,000 for a vacation cabin. Your bank will loan you the money at a 7 percent
2. You want a 15-year fixed rate mortgage for $90,000 for a vacation cabin. Your bank will loan you the money at a 7 percent APR for a 180-month loan. However, you can only afford to pay $500 a month, so the bank agrees to let you pay the remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $500? (6pts)
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