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5. You need a 360-month loan of $240,000 to buy new equipment for your plant. Your bank will lend you the money at a 6.35%
5. You need a 360-month loan of $240,000 to buy new equipment for your plant. Your bank will lend you the money at a 6.35% APR, compounded monthly. However, you can only afford monthly payments of $1,150, so you offer to pay off any 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 $1,150? $368,457
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