What is the fifth-year balloon payment

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Question 1: In March, the Cross National Bank agreed to finance the purchase of a new building for Harris Tweed's men's wear shop. The loan is for $300,000 and will carry a 12 percent annual rate of interest with annual compounding. The loan will require that Harris make four annual installments of $60,000 at the end of years 1 through 4. In year 5, Harris must make a large balloon payment which will fully retire the outstanding loan balance. What is the fifth-year balloon payment?

Reference no: EM132538263

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