Mr. B borrows an amount from the bank today and agrees to repay the loan by monthly payments (of amount each) plus 1 balloon payment (smallest balloon payment) made one month after the h payment. The first repayment is made one month after today. You are given that

• The loan charges compound interest at an annual effective interest rate = 21.7%

• The interest-due in 10th payment is 1030.847.

• The principal repaid in 20th payment is 1848.1581.

  Using prospective method, calculate the outstanding balance at 15th payment date. (Hint: What quantity do you need to calculate the balloon payment?)