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You have borrowed $56000 as a mortgage loan to buy a house. The bank will charge interest at the rate of 9% annually and requires
- You have borrowed $56000 as a mortgage loan to buy a house. The bank will charge interest at the rate of 9% annually and requires a minimum monthly payment of $500. At the end of five years, you must pay off the entire mortgage by a balloon payment. You plan to pay only the minimum amount each month and then pay off the loan with the final payment. Find this balloon payment. (Answer: $49966.07)
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