Mario Guiglini has just sold his hotel and purchased a restaurant with the proceeds. The restaurant is on the Riccione seafront in northern Italy. The cost of the restaurant to Mario is 200,000 and the seller requires a 20 per cent up-front payment. Mario is able to pay the up-front payment from the proceeds of the hotel sale. He needs to take out a mortgage and has been able to arrange one with Unicredit Bank that charges a 12 per cent APR. Mario will make equal monthly payments over the next 20 years. His first payment will be due one month from now. However, the mortgage has a 10-year balloon payment option, meaning that the balance of the loan could be paid off at the end of year 10. There were no other transaction costs or finance charges.

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How much will Marios balloon payment be in 8 years?