You need a 15-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 6.1 percent APR for this 180-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment.

How large will this balloon payment have to be for you to keep your monthly payments at $950?

Multiple Choice

• $237,130.06

• $89,299.4

• $254,242.54

• $98,139.09

• $244,463.98