You need a 25-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank...

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Finance

You need a 25-year, fixed-rate mortgage to buy a new home for$210,000. Your mortgage bank will lend you the money at a 7.6percent APR for this 300-month loan. However, you can affordmonthly payments of only $850, so you offer to pay off anyremaining loan balance at the end of the loan in the form of asingle balloon payment.
How large will this balloon payment have to be for you to keepyour monthly payments at $850?
Multiple Choice
$618,766.95
$95,983.79
$663,420.23
$637,904.07
$76,490.22

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You need a 25-year, fixed-rate mortgage to buy a new home for$210,000. Your mortgage bank will lend you the money at a 7.6percent APR for this 300-month loan. However, you can affordmonthly payments of only $850, so you offer to pay off anyremaining loan balance at the end of the loan in the form of asingle balloon payment.How large will this balloon payment have to be for you to keepyour monthly payments at $850?Multiple Choice$618,766.95$95,983.79$663,420.23$637,904.07$76,490.22