- May 5, 2011 at 2:37 pm #205062AnonymousInactive
…Your mortgage bank will lend you the m? You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 6.35 percent APR for this 360-month loan. However, you can afford monthly payments of only $1,150, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. This balloon payment will have to be in the amount of _____ for you to keep your monthly payments at $1,150.
I have worked this question, I figured out that the monthly payment should be $1493.47 but what I can’t figure out is how to calculate the difference of the interest accumulating to add up for the balloon payment.
- May 5, 2011 at 11:15 pm #258747Karol PopeMember
It will be in the amount of the number of dollars that show up on your calculator after you do your homework problem yourself.
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