You need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 8.6 percent APR for this 240-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment?
How large will this balloon payment have to be for you to keep your monthly payments at $950?
$545,518.01
$584,885.29
$562,389.7
$84,640.23
$101,324.59