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1 February, 03:04

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%.

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  1. 1 February, 03:48
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    The balloon payment at maturity (Year 7) if the interest rate on this loan is 4.5% is $282,835.42

    Explanation:

    Monthly payments=PMT (4.5%/12,12*30,325000) = 1646.73

    Loan balance after 7 years=FV (4.5%/12,12*7,-1646.73,325000) = 282835.42
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