Suppose that you take out a mortgage loan with the following characteristics: compounding period is monthly...

Suppose that you take out a mortgage loan with the following characteristics:

compounding period is monthly
loan is for $250,000
APR = 6%
life of loan for the purpose of calculating the mortgage payments is 30 years
the loan requires a balloon payment of the balance of the principal owed at the end of year 5, i.e., the balance owed immediately after the 60th payment.

What is the size of the balloon payment?

Do not round at intermediate steps in your calculation.

Group of answer choices

$167,371.45

$185,714.26

$209,214.31

$232,635.89

Expert Solution

jeff jeffy answered 2 years ago

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