You would like to buy a house that costs

$350,000.

You have

$50,000

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 you a 30-year mortgage that requires annual payments and has an interest rate of

7%

per year. You can afford to pay only

$22,970

per year. The bank agrees to allow you to pay this amount each year, yet still borrow

$300,000.

At the end of the mortgage (in 30 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will be this balloon payment?

Hint: The balloon payment will be in addition to the 30th payment.