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You are looking to purchase a tesla model s luxury sedan. The price of the car is 77250. However, you negotiate a six year loan,
You are looking to purchase a tesla model s luxury sedan. The price of the car is 77250. However, you negotiate a six year loan, with no money down and no monthly payments during the first year. After the first year, you will pay 1250 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now?
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