Question
You need a 15-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 8.1 percent
| You need a 15-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 8.1 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? |
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
27th edition
978-1337899451
