You borrow $100,000 today. You will repay the loan with 5 equal annual payments starting next...
You borrow $100,000 today. You will repay the loan with 5 equal annual payments starting next year. Each payment is equal to $20,000 In addition to these payments, you will make a "balloon payment" in year 5 . If the interest rate on the loan is 2% APR, compounded annually, how big is the balloon payment?
Group of answer choices $6,304 $6,960 $5,731 $6,327
Homework Answers
![Future value = pmtx ((1+r)^n-1)}/r future value of $20,000 each year at 5 = $104,080.80 [ 20000*(((1.0245)-1)/0.02)] Loan amo](http://img.homeworklib.com/questions/b07e0d60-d349-11ea-967e-bd698313b635.png?x-oss-process=image/resize,w_560)
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