Balloon payment be in order to completely pay off the loan

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Reference no: EM131868370

Jesse buys a new house in Santa Barbara, California. The amount loaned for the mortgage is $600,000. The loan will be paid off with 400 equal monthly payments of $7,000, starting 24 months from today, and a balloon payment 425 months from today. The stated annual interest rate is 12%, compounded monthly. How much must the balloon payment be in order to completely pay off the loan?

Reference no: EM131868370

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