Given the following information, calculate the balloon payment for a partially amortized mortgage. Loan amount: $84,000,...

Given the following information, calculate the balloon payment for a partially amortized mortgage. Loan amount: $84,000, Term to maturity: 7 years, Amortization Term: 30 years, Interest rate: 4.5%, Monthly Payment: $425.62. $9,458 $30,620 $73,102 $84,000

Expert Solution

The amortization table is as shown below for 7 years (84 months):

Month	Payment	Interest	Principal	Outstanding
0				$ 84,000
1	425.62	315	110.62	$ 83,889
2	425.62	314.5852	111.0348	$ 83,778
3	425.62	314.1688	111.4512	$ 83,667
4	425.62	313.7509	111.8691	$ 83,555
5	425.62	313.3313	112.2887	$ 83,443
6	425.62	312.9103	112.7097	$ 83,330
7	425.62	312.4876	113.1324	$ 83,217
8	425.62	312.0634	113.5566	$ 83,103
9	425.62	311.6375	113.9825	$ 82,989
10	425.62	311.2101	114.4099	$ 82,875
11	425.62	310.781	114.839	$ 82,760
12	425.62	310.3504	115.2696	$ 82,645
13	425.62	309.9181	115.7019	$ 82,529
14	425.62	309.4843	116.1357	$ 82,413
15	425.62	309.0487	116.5713	$ 82,296
16	425.62	308.6116	117.0084	$ 82,179
17	425.62	308.1728	117.4472	$ 82,062
18	425.62	307.7324	117.8876	$ 81,944
19	425.62	307.2903	118.3297	$ 81,826
20	425.62	306.8466	118.7734	$ 81,707
21	425.62	306.4012	119.2188	$ 81,588
22	425.62	305.9541	119.6659	$ 81,468
23	425.62	305.5054	120.1146	$ 81,348
24	425.62	305.0549	120.5651	$ 81,227
25	425.62	304.6028	121.0172	$ 81,106
26	425.62	304.149	121.471	$ 80,985
27	425.62	303.6935	121.9265	$ 80,863
28	425.62	303.2363	122.3837	$ 80,741
29	425.62	302.7773	122.8427	$ 80,618
30	425.62	302.3167	123.3033	$ 80,494
31	425.62	301.8543	123.7657	$ 80,371
32	425.62	301.3901	124.2299	$ 80,246
33	425.62	300.9243	124.6957	$ 80,122
34	425.62	300.4567	125.1633	$ 79,997
35	425.62	299.9873	125.6327	$ 79,871
36	425.62	299.5162	126.1038	$ 79,745
37	425.62	299.0433	126.5767	$ 79,618
38	425.62	298.5686	127.0514	$ 79,491
39	425.62	298.0922	127.5278	$ 79,364
40	425.62	297.614	128.006	$ 79,236
41	425.62	297.1339	128.4861	$ 79,107
42	425.62	296.6521	128.9679	$ 78,978
43	425.62	296.1685	129.4515	$ 78,849
44	425.62	295.6831	129.9369	$ 78,719
45	425.62	295.1958	130.4242	$ 78,588
46	425.62	294.7067	130.9133	$ 78,458
47	425.62	294.2158	131.4042	$ 78,326
48	425.62	293.723	131.897	$ 78,194
49	425.62	293.2284	132.3916	$ 78,062
50	425.62	292.7319	132.8881	$ 77,929
51	425.62	292.2336	133.3864	$ 77,796
52	425.62	291.7334	133.8866	$ 77,662
53	425.62	291.2313	134.3887	$ 77,527
54	425.62	290.7274	134.8926	$ 77,392
55	425.62	290.2215	135.3985	$ 77,257
56	425.62	289.7138	135.9062	$ 77,121
57	425.62	289.2041	136.4159	$ 76,985
58	425.62	288.6926	136.9274	$ 76,848
59	425.62	288.1791	137.4409	$ 76,710
60	425.62	287.6637	137.9563	$ 76,572
61	425.62	287.1463	138.4737	$ 76,434
62	425.62	286.6271	138.9929	$ 76,295
63	425.62	286.1058	139.5142	$ 76,155
64	425.62	285.5827	140.0373	$ 76,015
65	425.62	285.0575	140.5625	$ 75,875
66	425.62	284.5304	141.0896	$ 75,734
67	425.62	284.0013	141.6187	$ 75,592
68	425.62	283.4703	142.1497	$ 75,450
69	425.62	282.9372	142.6828	$ 75,307
70	425.62	282.4021	143.2179	$ 75,164
71	425.62	281.8651	143.7549	$ 75,020
72	425.62	281.326	144.294	$ 74,876
73	425.62	280.7849	144.8351	$ 74,731
74	425.62	280.2418	145.3782	$ 74,586
75	425.62	279.6966	145.9234	$ 74,440
76	425.62	279.1494	146.4706	$ 74,293
77	425.62	278.6001	147.0199	$ 74,146
78	425.62	278.0488	147.5712	$ 73,999
79	425.62	277.4954	148.1246	$ 73,851
80	425.62	276.9399	148.6801	$ 73,702
81	425.62	276.3824	149.2376	$ 73,553
82	425.62	275.8227	149.7973	$ 73,403
83	425.62	275.261	150.359	$ 73,253
84	425.62	274.6972	150.9228	$ 73,102

The ballon payment at the end of 7 years = 73,102 (Option C)

jeff jeffy answered 2 years ago

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