How much will mikes baloon payment be in eight years

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Reference no: EM13259231

Mike Bayles has just arranged a $550,000 vacation home in the Bahamas with a 20% down payment. The mortgage has a 6.1% stated annual interest rate, compounded monthly, and calls for equal monthly payments over the next 30 years. His first payment will be due one month from noe. 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 Mike's baloon payment be in eight years?

Reference no: EM13259231

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