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Suppose you want to buy a $453,806 home. You can put $90,000 down and can finance at 4.1% APR Monthly for 30 years, but can only afford to pay $1,149, for the first five years, and have offered to make a balloon payment of $100,000 at the end of thirty years (your 360th payment). How much will your remaining payments be? (Assume all payments will be made at the end of each month, and that negative amortization is permitted)

Suppose you want to buy a $453,806 home. You can put $90,000 down and can finance at 4.1% APR Monthly for 30 years, but can only afford to pay $1,149, for the first five years, and have offered to make a balloon payment of $100,000 at the end of thirty years (your 360th payment). How much will your remaining payments be? (Assume all payments will be made at the end of each month, and that negative amortization is permitted)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 6P
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Suppose you want to buy a $453,806 home. You can put $90,000 down and can finance at 4.1% APR Monthly for 30 years, but can only afford to pay $1,149, for the first five years, and have offered to make a balloon payment of $100,000 at the end of thirty years (your 360th payment). How much will your remaining payments be? (Assume all payments will be made at the end of each month, and that negative amortization is permitted.)
Transcribed Image Text:Suppose you want to buy a $453,806 home. You can put $90,000 down and can finance at 4.1% APR Monthly for 30 years, but can only afford to pay $1,149, for the first five years, and have offered to make a balloon payment of $100,000 at the end of thirty years (your 360th payment). How much will your remaining payments be? (Assume all payments will be made at the end of each month, and that negative amortization is permitted.)
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