I = PRT
I = 300,000 * 0.07 * 30
I = 630,000
630,000 + 630,000 = 930,000
23,500 * 30 = 705,000
930,000 - 705,000 = _______ balloon payment
Mortgage is for $300,000 for 30 years, Fixed interest rate = 7% per year.
Annual payments = $23,500
At end of 30 years, must make balloon payment. How much is the balloon payment?
3 answers
Why is 630,000 added twice? and that doesn't = 930,000
Teacher said answer would be about 3 times the annual payment, like having to make 3 payments at the end.
Can someone please help?
Teacher said answer would be about 3 times the annual payment, like having to make 3 payments at the end.
Can someone please help?
My goof.
This line 630,000 + 630,000 = 930,000
should be 630,000 + 300,000 = 930,000
Be sure to subtract as I showed in the last step.
This line 630,000 + 630,000 = 930,000
should be 630,000 + 300,000 = 930,000
Be sure to subtract as I showed in the last step.
0 answers