business math

User Generated

pnevffn2wnpxfba

Business Finance

Question Description

You find a great deal for your house! The bank agrees to give you a 5 year loan where you only pay $100 a month, and at 0% interest. What can go wrong? However, when 5 years pass you realize you agreed to a balloon mortgage, and all the rest of that loan is due right now. How much do you need to pay for your final (60th) payment? Explain how you got your answer and your reasoning behind it.

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Explanation & Answer

Question Error. If there is no interest rate then it is not possible to calculate the Principal Amount of which the interest is $100.

SVANAPRNPPBHAGVATRKCREG (218)
Boston College

Anonymous
Very useful material for studying!

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