3 years ago

Can someone plz help me idk how to do it

Mathematics

1 answer:

pshichka [43]3 years ago

6 0

At first glance the answer seems like 3
u should draw it out

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You need a 30-year, fixed-rate mortgage to buy a new home for $225,000. your bank will lend you the money at an apr of 5.5 perce

bulgar [2K]

Loan amount, P = 225000
interest = 5.5%/12 per month
Monthly payment, A = 1000

At the end of 30 years,
Future value of loan (with zero repayment)
F1=225000*(1+.055/12)^(30*12)
=1167162.264

Future value of repayment, A=1000 per month
F2= $\frac{A((1+i)^n-1)}{i}$
= $\frac{1000((1+.055/12)^{360}-1)}{.055/12}$
=913611.893

Therefore balloon payment
= F1-F2
=1167162.264-913611.893
=253550.37 (to the nearest cent)

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