Question

Assume you have taken out a partially amortizing loan for $325,000 that has a term of 7 years but amortizes over 30 years. Calculate the balloon payment at maturity (year 7) if the interest rate on this loan is 4.5%.

Answer 1

Answer:

The balloon payment at maturity (Year 7) if the interest rate on this loan is 4.5% is $282,835.42

Explanation:

Monthly payments=PMT(4.5%/12,12*30,325000)=1646.73

Loan balance after 7 years=FV(4.5%/12,12*7,-1646.73,325000)=282835.42