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You would like to buy a house that costs $ 2 5 0 0 0 0 . You have $ 4 5 0 0 0
You would like to buy a house that costs $ You have $ in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering a year mortgage that requires annual payments and has an interest rate of per year. You can afford to pay only $ per year. The bank agrees to allow you to pay this amount each year, yet still borrow $ At the end of the mortgagein years you must make a balloon payment; that is you must repay the remaining balance on the mortgage. How much will this balloon payment be
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