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You need a 15-year, fixed-rate mortgage to buy a new home for $220,000. Your mortgage bank...

You need a 15-year, fixed-rate mortgage to buy a new home for $220,000. Your mortgage bank will lend you the money at a 7.6 percent APR for this 180-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment.

How large will this balloon payment have to be for you to keep your monthly payments at $950?

Multiple Choice

  • $357,045.73

  • $108,028.47

  • $382,811.92

  • $118,145.62

  • $368,088.38

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