Ann obtains a 30 year Fixed Rate, Constant Payment Mortgage with monthly payments for $4,500,000 at 4.38%. Her monthly payment is $20,000. What is the balloon payment for this mortgage after 360 payments are made?

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Expert Solution

A1	B	C
2	Given Mortgage Amount is (pv)	$4,500,000
3	Monthly repayment amount (pmt)	$20,000
4	Number of monthly repayments (nper)	360
5	Monthly interest rate (rate)(4.38%/12)	0.365000%
6
7	Balloon Payment formula is FV(rate,nper,pmt,-pv)
8	Balloon payment to be made after 360 monthly payments is	$1,843,592

A1	B	C
2	Given Mortgage Amount is (pv)	4500000
3	Monthly repayment amount (pmt)	20000
4	Number of monthly repayments (nper)	360
5	Monthly interest rate (rate)(4.38%/12)	=4.38%/12
6
7	Balloon Payment formula is FV(rate,nper,pmt,-pv)
8	Balloon payment to be made after 360 monthly payments is	=FV(C5,C4,C3,-C2)

Balloon payment to be made after 360 monthly payments is $1,843,591.67

1,843,591.67

Junaid answered 1 year ago

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