What is the payment amount with balloon payment

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Reference no: EM131969388

1. You are considering the purchase of a used Porsche, which you believe you can purchase for $16,000. Your credit union has approved you for a 48-month loan at 4.9% for the entire amount of the purchase.

2. Consider a loan for $300,000 with 20 annual payments and an interest rate of 5%. What is the payment amount with a balloon payment of $60,000?

3. What is the annual payment on a 20-year fully amortized loan of $500,000 with an interest rate of 5%?

Reference no: EM131969388

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