ch7#4

4. You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now