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A balloon payment is a large payment due at the end of certain types of loans called balloon loans. It covers the rest of the
A balloon payment is a large payment due at the end of certain types of loans called balloon loans. It covers the rest of the remaining principal on a loan that has not yet been repaid through the regular payments. Professor Sullivant takes out a balloon loan to purchase a new house. The cost of the house is $300000. A down payment of $60000 will be made. The nominal monthly interest rate is 4.5%. Monthly payments of $2000 per month will be made at the end of each month for 10 years, except for the last month, which will be the balloon payment. Find the size of the balloon payment
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