Final answer:
Calculation of the balloon payment requires information about the periodic mortgage payments and the amortization schedule over the initial 7 years. Without this information, it's not possible to determine the correct balloon payment amount.
Step-by-step explanation:
The question pertains to the calculation of a balloon payment for a specific type of mortgage. In this case, April is considering a 7/23 balloon mortgage to purchase a house. To solve for the balloon payment at the end of 7 years, we need to calculate the remaining balance after April makes regular mortgage payments at an interest rate of 4.15% for those 7 years. We use financial formulas or calculators to determine the remaining balance of the mortgage, which in this instance becomes the balloon payment that she needs to pay.
Unfortunately, without more information about the terms of the mortgage payments (such as the amount of the periodic payments or the amortization schedule for the initial 7 years), it is not possible to provide the correct balloon payment amount. Therefore, as a tutor, I would guide the student on how to approach this kind of financial calculation and advise them to seek out those additional details to move forward in solving the problem.