Mike just arranged to purchase a 400000 vacation home with


Mike just arranged to purchase a $400,000 vacation home with a 20% down payment. The mortgage has an 8% stated annual interest rate compounded monthly and calls for equal monthly payments over the next 30 years. His first payment is due one month from now. However the mortgage has an 8 year balloon payment. Meaning that the balance of the loan must be paid off at the end of year 8.How much will his balloon payment be in 8 years? Show work.

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Financial Management: Mike just arranged to purchase a 400000 vacation home with
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