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Why the answer is 120074, please list the steps You would like to buy a house that costs $350,000. You have $50,000 in cash that
Why the answer is 120074, please list the steps
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 you a 30-year mortgage that requires annual payments and has an interest rate of 9% per year. You can afford to pay only $28,320 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 be this balloon payment? Hint: The balloon payment will be in addition to the 30th payment. The balloon payment is $ 120,074. (Round to the nearest dollar.)Step by Step Solution
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