You would like to buy the house and take the mortgage (house costs $343,000, down payment is 43,000, mortgage is for 26-years and interest rate is 8.4%). You can afford to pay only $12,000 per year. The bank agrees to allow you to pay this amount each year, yet still borrow the same amount as in the previous question. At the end of the mortgage (along with the last instalment), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will this balloon payment be