You are going to buy a house which costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the $300,00 rest of the purchase price.

The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year.

After your downpayment, you can afford to pay only $23,500 per year. The bank agrees to allow you to pay this amount each year, and borrow $300,000. But at the end of the mortgage (in 30 years), you must make a balloon payment; A balloon payment is when your annual payments for 30 years do not fully pay off the $300,000 loan so at the end, you must repay the remaining balance on the mortgage. The remaining balance is the balloon. How much will this balloon payment be?