Question
You would like to buy a house that costs $400 000. You have $50 000 in cash that you can put down on the house,
You would like to buy a house that costs $400 000. 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 monthly payments and has an effective annual interest rate 7%. You can afford to pay $2200 only per month. The bank agrees to allow you to pay this amount each month, yet still borrow $350 000. At the end of the mortgage, you must make two equal balloon payments, one at end of 29 years and the other at the end of 30 years; that is, you must repay the remaining balance on the mortgage. How much will these balloon payments be?
The answer is $44 199.78
can anybody pls solve this
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