Assume you have taken out a partially amortizing loan for $325,000 that has a term of 7 years, but amortizes over 30 years. Calculate the balloon payment at maturity (Year 7) if the interest rate on this loan is 4.5%.
A) $1,646.73
B) $118,468.21
C) $282,835.42
D) $324,572.02

Question

Quizplus · Accepted Answer

The balloon payment is the remaining balance after 7 years of payments on a 30-year amortization schedule. The remaining balance is $282,835.42.

Assume You Have Taken Out a Partially Amortizing Loan for $325,000