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In: Finance

Suppose that you wish to buy a new home that will cost you $452,847. You must...

Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and the bank offers you a 5-year 5.1% APR negative amortization loan with a payments $1,258 per month, and a balloon payment of $92,233 (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(5.1%/12,12*25,FV(5.1%/12,12*5,-1258,452847-80000),92233)
=2180.29694

jeff jeffy answered 2 years ago
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