U2 18 / You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the? house, but you need to borrow the rest of the purchase price. The bank is offering a? 30-year mortgage that requires annual payments and has an interest rate of 10 % per year. You can afford to pay only $31,190 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.

a. The PV of the annuity is $___ (Round to the nearest? dollar.)

b. How much will this balloon payment? be?