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You would like to buy a house that oosts $350,000. You have 550,000 in cash that you can put down on the house, but you

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You would like to buy a house that oosts $350,000. You have 550,000 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 30year mortgage that requires annual payments and has an interest rate of 10% per year. You can afford to pay only $30.3?0 per year. The bank agrees to allow you to pay this amount each year, yet still bonow $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. where X is the balloon payment. The present value of the loan payments must be equal to the amount borrowed, that is, $300,000 = Wtannuity) + Film The present value of the annual payments, PVtannuity) is found using the following formula: PVtannuity)={:x [1 [1'10"] where C is the annual loan payment, ris the interest rate, and r.- is the number of periods. The present value of the balloon payment, PWX) is found using the following fom1ula: X (1 + r)" The balloon payment is $D. (Round to the nearest dollar.) Pvm =

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