Problem $4-37$

You would like to buy the house and take the mortgage described in Problem $4\mathrm{.}28.$ You can afford to pay only $$23,500$ per year. The bank agrees to allow you to pay this amount each year, yet still borrow $$300,000.$ At the end of the mortgage $($in $30$ years$),$ you must make a balloon payment; that is$,$ you must repay the remaining balance on the mortgage. How much will this balloon payment be$?$

Payment

Loan

Term

Rate

Balloon

PV of Payments

PV of difference

FV of difference

$\backslash$table$[[$$$23,500\mathrm{.}00$