You need a 15-year, fixed-rate mortgage to buy a new home for $170,000. 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 $800, 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 $800?

Multiple Choice

• $302,972.16

• $291,319.39

• $282,579.81

• $86,790.96

• $77,956.09