Repay the remaining balance on the mortgage

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Reference no: EM131499640

You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. the bank is offering you a 30-year mortgage that requires annual payments and has an interest rate of 10% per year. You can afford to pay only $30, 230 per year. the bank agrees to allow you to pay this amount each year, yet still borrow $300.000. At the end of the mortgage (in 30 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will be this balloon payment?

The balloon payment is $. (Round to the nearest dollar.)

Reference no: EM131499640

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