Amortizing fixed rate mortgage

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Reference no: EM131939772

Ann wants to buy an office building which costs $2,000,000. She obtains a 30 year partially amortizing fixed rate mortgage with 80% LTV, an annual interest rate of 4%, with monthly compounding and monthly payments. The payment on the loan is $6,000 per month. Ann has a balloon payment due 5 years after she gets the loan. If Ann pays the required monthly payment for 5 years, how much is her balloon payment?

Reference no: EM131939772

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