You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. YOL mortgage bank will lend you the money at a 5.85 percent APR for this 360-month loar However, you can afford monthly payments of only $1,300, so you offer to pay off an 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 $1,300? (Do not round Intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Balloon payment 69

You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. YOL mortgage bank will lend you the money at a 5.85 percent APR for this 360-month loar However, you can afford monthly payments of only $1,300, so you offer to pay off an 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 $1,300? (Do not round Intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Balloon payment 69

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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Concept explainers

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.

Question

You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your
mortgage bank will lend you the money at a 5.85 percent APR for this 360-month loan.
However, you can afford monthly payments of only $1,300, 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 $1,300? (Do not round Intermediate calculations and round your final answer to 2
decimal places. (e.g., 32.16))
Balloon payment
$

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You need a 25-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 300-month loan. However, you can afford monthly payments of only $900, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. Required: How large will this balloon payment have to be for you to keep your monthly payments at $900? A) 48,522.47 B) 341,563.19 C) 67,932.38 D) 366,212.08 E) 352,127.00 Only typing answer Please explain step by step without table and graph
You need a 30-year, fixed-rate mortgage to buy a new home for $265,000. Your mortgage bank will lend you the money at an APR of 5.6 percent for this 360-month loan. However, you can afford monthly payments of only $1,050, 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 $1,050? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You need a 15-year, fixed - rate mortgage to buy a new home for $230,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 180 - month loan. However, you can afford monthly payments of only $1,000, 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 $1,000? Multiple Choice $ 301,801.43 $115,924.72 $323, 580.91 $311, 135.49 $106, 142.4
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