You are considering a hotel purchase. The current purchase price is $ 3,000,000. The bank is...

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Finance

You are considering a hotel purchase. The current purchase priceis $ 3,000,000. The bank is willing to finance 70% of the purchaseprice for 20 years in quarterly installments at 8% per annummortgage nominal rate. What is the balloon payment you will have topay, if you want to resell the hotel after 10 years? Consider afully amortizing fixed rate mortgage.
a)      $ 0
b)      $ 1,445,395
c)       $ 1,669,270
d)      $ 1,981,333

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You are considering a hotel purchase. The current purchase priceis $ 3,000,000. The bank is willing to finance 70% of the purchaseprice for 20 years in quarterly installments at 8% per annummortgage nominal rate. What is the balloon payment you will have topay, if you want to resell the hotel after 10 years? Consider afully amortizing fixed rate mortgage.a) $ 0b) $ 1,445,395c) $ 1,669,270d) $ 1,981,333