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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 $250000. You have $45000 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 20-year mortgage that requires annual payments and has an interest rate of 5% per year. You can afford to pay only $15790 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $205000. At the end of the mortgage(in 20years), 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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