**Balloon Payment Calculation for Tesla Model X Purchase**You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? **(Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to 2 decimal places)****Diagram/Graph Explanation:**There is a text box labeled "Amount of balloon payment" for students to input their calculated answer.**Instructions:**1. Determine the monthly interest rate from the APR.2. Calculate the present value of the loan.3. Use the monthly payment and present value to find the future value.4. Calculate the balloon payment after accounting for the total payments made over five years.Calculation steps should include:- Determining monthly interest rate: monthly rate = APR / 12- Finding the present value: $ PV $- Calculating the future value: $ FV $- Subtracting total payments over five years from the initial loan amount.Enter your calculated balloon payment in the provided text box. Ensure all intermediate values and the final amount are rounded to two decimal places.

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You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? (Do not round monthly Interest rate calculation. Round Intermediate value calculation and final answer to 2 decimal places) Amount of balloon payment

You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? (Do not round monthly Interest rate calculation. Round Intermediate value calculation and final answer to 2 decimal places) Amount of balloon payment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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