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Audrey Sanborn has just arranged to purchase a $460,000 condo in Vancouver with a 10 percent...

Audrey Sanborn has just arranged to purchase a $460,000 condo in Vancouver with a 10 percent down payment. The mortgage has a 7.6 percent stated annual interest rate, compounded monthly, and calls for equal monthly payments over the next 24 years. Her first payment will be due one month from now. However, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. There were no other transaction costs or finance charges.

How much will Audrey’s balloon payment be in eight years? (Do not round intermediate calculations. Round the answer to 2 decimal places. Omit $ sign in your response.)

Balloon payment (PV)           $

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Answer #1

First, we need to find the monthly payment.

Then, find the outstanding amoun of loan at the end of year 8.

Answer. Ballon payment=$347158.25

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