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A buyer of a piece of property worth $30,000 agrees to make 19 quarterly payments of...

A buyer of a piece of property worth $30,000 agrees to make 19 quarterly payments of $1750 at the end of each quarter and a final balloon payment at the end of 5 years. Find the size of the balloon payment based on an interest rate of 6.6% interest compounded quarterly.

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Answer #1

Hence, Balloon payment is $2,297.25 ($1,750+$547.25)

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