You are seeking a fixed-rate mortgage of $195,000 with a term of 30 years. Your bank quotes an APR of 6.2 percent, compounded monthly. You can only afford monthly payments of $1,000, so you offer to pay off any remaining loan balance at the end of the loan term in the form of a single balloon payment. What will be the amount of the balloon payment?
A) $232,191.91
B) $173,316.67
C) $194,480.18
D) $202,828.59
E) $226,315.07
Correct Answer:
Verified
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