Register
assume you have taken out a partially amortizing loan for $1,000,000 that has a term of 7 years, but amortizes over 20 years. calculate the balloon payment if the interest rate on this loan is 9%.
96.7k views
1 vote
assume you have taken out a partially amortizing loan for $1,000,000 that has a term of 7 years, but amortizes over 20 years. calculate the balloon payment if the interest rate on this loan is 9%.

User Vasia
by
4.5k points

1 Answer

4 votes

Answer:

The balloon payment for this loan would be $581,213.92. This can be calculated by taking the original loan amount of $1,000,000, multiplied by the interest rate of 9%, then multiplied by the difference in the amortization period (20 years) and the loan term (7 years). This equals $540,000. Finally, add the original loan amount to the interest amount, resulting in $1,540,000. This is the total amount due at the end of the loan term, or the balloon payment.

Step-by-step explanation:

User Fennec
by
4.1k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.6m questions

5.9m answers

Other Questions

Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
When goods are produced at the lowest possible cost, an economy is said to have achieved:?
Which quality ensures that you are in a better position to represent yourself? A. self-confidence B. self-management C. punctuality D. mutual respect E. avoidance of conflict
Art is charged with kidnapping. After listening to all the evidence, 11 of the 12 jurors found him guilty. The twelfth juror voted he was not guilty. Has Art been convicted of the crime?
Create an insurance plan. As you create the plan, think about all of the risks this family faces and how they can protect themselves from financial loss. Next to each type of insurance that you list in
Link Copied!