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

8%

per year. You can afford to pay only

$26,120

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.

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 boorow 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 8% per year. You can atlord to pay only $26,120 per year. The bank agrees to allow you to pay this amount each year, yet stal 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 addifion to the 30 th payment. The balloon payment is $ (Round to the nearest dollar.)