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You borrowed $140,000 from National Bank to buy an apartment in Sydney. The bank announced you that it will charge 4% pa for 20 years,
You borrowed $140,000 from National Bank to buy an apartment in Sydney. The bank announced you that it will charge 4% pa for 20 years, on monthly basis and the monthly installment is $ 848.37. You were repaying the loan regularly for 3 years (36 months). Your grandfather left a will and it granted you an amount of $ 200,000. To conserve cash flow you decided to foreclosure the house loan with the will amount. What is the balloon payment repayable to the bank?
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