Answer:
The answer is $1,441,746.04
Explanation:
Solution
Given that:
The Annual rate = 6.1%
The monthly interests rate = 6.1%/12 =0.5083%
Monthly payment =$1,550
The time period = $1,441,746.04300 Months
The amount of payment at the end of 300 months is
=1,550 *((1.005083^300 - 1) / 0.005083
The amount of payment at the end of 300 months is = $1,090,754.66
Thus
Future value of $315,000 = $315,000*1.005083^300
= $1,441,746.04
Now
The balloon payment = $1,441,746.04 - 1,090,754.66
= $350,991.38
Therefore the largeness of this balloon payment will be $1,441,746.04
