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In: Finance

Suppose that you wish to buy a new home that will cost you $467,043. You must...

Suppose that you wish to buy a new home that will cost you $467,043. You must put $80,000 down, and the bank offers you a 5-year 4.7% APR negative amortization loan with a payments $1,259 per month, and a balloon payment of $55,468 (your 360th payment). How much will your remaining payments be?

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Expert Solution

We see that monthly payments after 5 years is given as=PMT(4.7%/12,12*25,FV(4.7%/12,12*5,-1259,467043-80000),55468)
=2196.44744

jeff jeffy answered 2 years ago
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