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it is very important that you show your work from the calculations (right down what you...

it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,.....etc. in your calculation)

You wish to borrow $200,000 for 20 years at 7% interest rate and amortize the loan by making monthly payments. You also agree to make a balloon payment of $30,000 at the end of your last month (240th month). What will be your monthly payment?

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Answer #1

Present value of balloon payment = $7,428.06 [ 30,000 = 1.00583^240 ] so, Amount to be repaid in monthly payments= $192,571.9

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