Question

Miranda obtains a $296,000 15/5 balloon mortgage with a rate of 6.75%. What will her monthly payments be?

Answer 1

The correct answer for this question is this one: "A. $3398.79"
Miranda obtains a $296,000 15/5 balloon mortgage with a rate of 6.75%. Her monthly payments will be $3398.79
These are the following choices as seen from other source:
A. $3398.79
B. $2786.18
C. $2619.33
D. $2340.75

Hope this helps answer your question and have a nice day ahead.

Answer 2

Answer:

Miranda's monthly payments are $2614.64

Step-by-step explanation:

$\frac{p*r*(1+r)^{n}}{(1+r)^{n}-1}$

Here, p = 296000

n = 15 years = $15*12=180$

r =  6.75/12/100 =0.0056

Putting these values in formula we get,

$\frac{296000*0.0056*(1.0056)^{180}}{(1.0056)^{180} -1}$

= $\frac{296000*0.0056*2.7324}{2.7324-1}$

= $2614.64

So, her monthly payments are $2614.64.