25

You have just arranged for a $1, 620,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 6.2 percent, and it calls for monthly payments over the next 22 years. However, the loan has an eight-year balloon payment, meaning that the loan must be paid off then. How big will the balloon payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)