stic/nb/ui/evo/index.html?deploymentid=603385213811525489091307692&elSBN 9780357517642&id=1556149116&nbld=3059651&snapshotid=3059651& CENGAGE MINDTAP Ch 05-End-of-Chapter Problems - Time Value of Money Q Search this course X Attempts Average/6 35. Problem 5.35 (Amortization Schedule with a Balloon Payment) eBook You want to buy a house that costs $200,000. You have $20,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $180,000. However, the realtor persuades the seller to take a $180,000 mortgage (called a seller take-back mortgage) at a rate of 6%, provided the loan is paid off in full in 3 years. You expect to inherit $200,000 in 3 years, but right now all you have is $20,000, and you can afford to make payments of no more than $23,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.) a. If the loan was amortized over 3 years, how large would each annual payment be? Do not round intermediate calculations. Round your answer to the nearest cent. $ Could you afford those payments? -Select- b. If the loan was amortized over 30 years, what would each payment be? Do not round intermediate calculations. Round your answer to the nearest cent. $ Could you afford those payments? -Select- c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be? Do not round intermediate calculations. Round your answers to the nearest cent. Loan balance: $ Balloon payment: $ M end-of-year annual payments to simplify things.) a. If the loan was amortized over 3 years, how large would each annual payment be? Do not ro $ Could you afford those payments? -Select- b. -Select- C. No, the calculated payment is greater than the affordable payment. Yes, the calculated payment is less than the affordable payment. No, the affordable payment is greater than the calculated payment. ayment be? Do not round interme itten as a balloon note, which me Yes, the calculated payment is greater than the affordable payment. be at the end of Year 3, and wha answers to the nearest cent. Loan balance: $ Balloon payment: $ eBook You want to buy a house that costs $200,000. You have $20,000 for a down payment, but your credit is such that mortgage companies will not lend you the require realtor persuades the seller to take a $180,000 mortgage (called a seller take-back mortgage) at a rate of 6%, provided the loan is paid off in full in 3 years. You ex years, but right now all you have is $20,000, and you can afford to make payments of no more than $23,000 per year given your salary. (The loan would call for mo end-of-year annual payments to simplify things.) a. If the loan was amortized over 3 years, how large would each annual payment be? Do not round intermediate calculations. Round your answer to the near $ Could you afford those payments? -Select- b. If the loan was amortized over 30 years, what would each payment be? Do not round intermediate calculations. Round your answer to the nearest cent. C. $ Could you afford those payments? -Select- -Select- Yes, the calculated payment is less than the affordable payment. No, the calculated payment is greater than the affordable payment. No, the affordable payment is greater than the calculated payment. Yes, the calculated payment is greater than the affordable payment. itten as a balloon note, which means that at the end of the third year, you would have to mak be at the end of Year 3, and what would the balloon payment be? Do not round intermediate k M