You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 300-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. Note: The interest on the loan is compounded monthly.

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

is it possible to show steps on calculator as well?

Multiple Choice $521,434.95 $100,595.29 O 0 $505,791.91 $542,292.35 $80,107.05