You just purchased a vacation home in Florida. The value of the home is 500,000 (in year 0). The loan terms are:

The down payment is $25,000 due today (i.e., year 0). The bank will give you a mortgage for the remaining balance.

You are required to pay $30,000 per year over the next 30 years.

The first annual payment will be one year from today and the last payment will be 30 years from today.

The bank requires that you make a balloon payment in 30 years along with your last annual payment.

The interest rate is 5% APR, compounded annually.

Compute the balloon payment in year 30. Show your work.