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You Are Seeking a Fixed-Rate Mortgage of $195,000 with a Term

Question 122

Multiple Choice

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:

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