Question: Ms Fatin is planning to purchase a house costing $420,000, she has $50,000 in cash saving s that she can use as a down payment on the house, but she needs to borrow the rest of the purchase price the bank is offering a 30 year mortgsge that requires annual payments and had an interest rate 8% per year. what will her annual payment be if she signs up for this mortgage?
Ms fatin can afford to pay only $30,000 per year. the bank agrees to allow her to pay this amount each year, yet still borrow the same amount. at the end of the mortgage (in 3o years), she must make a ballon payment, that is, she must repay the remaining balance on the mortgage. how much will this ballon payment be?