Question
You need a 15-year, fixed-rate mortgage to buy a new home for $250,000. Your mortgage bank will lend you the money at a 6.6 percent
| You need a 15-year, fixed-rate mortgage to buy a new home for $250,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 180-month loan. However, you can afford monthly payments of only $900, 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 $900? |
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Financial Management Theory And Practice
Authors: Prasanna Chandra
10th Edition
9353166527, 978-9353166526
