You have just arranged for a $1,560,000 mortgage to finance the purchase of a large tract of land. the mortgage has an apr of 5.6 percent, and it calls for monthly payments over the next 30 years. however, the loan has an eight-year balloon payment, meaning that the loan must be paid off then. how big will the balloon payment be? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))

P=1560000

APR=5.6%

monthly interest, i=5.6%/12=7/1500 [fractions keep exact values]

R=1+i=1+7/1500

# of periods, n=30 years = 360 periods

monthly payment, A

A=PR^n (i) / (R^n-1)

=1560000 * (1+7/1500) ^360 * (7/1500) / ((1+7/1500) ^360-1)

=$8955.632

At the end of eight years,

number of periods, n1 = 8*12 = 96

If paid off at the end of 8 years, value of loan then

future value of principal

F1=PR^n1=1560000 * (1+7/1500) ^96=2439135.635

future value of payments

F2=A (R^n1-1) / i=8955.632 * (1+7/1500) ^96-1) / (7/1500) = 1081485.620

Therefore the balloon payment

= future value of principal (owing) - future value of payments (paid)

=F1-F2

=2439135.635-1081485.620

=1357650.0152

Round to two places after decimal to get final answer.