6. The Bartolotti family took out a loan to have a garage built next to their house. The ten-year, 10.4% loan was for $56,188. The monthly payment was $475, but the promissory note stated that there was a balloon payment at the end. What is the sum of all but the last monthly payment? If the finance charge is $34,415.60, what must the total of all of the monthly payments be? What is the amount of the balloon payment for the final month of this loan?

6. The Bartolotti family took out a loan to have a garage built next to their house. The ten-year, 10.4% loan was for $56,188. The monthly payment was $475, but the promissory note stated that there was a balloon payment at the end. What is the sum of all but the last monthly payment? If the finance charge is $34,415.60, what must the total of all of the monthly payments be? What is the amount of the balloon payment for the final month of this loan?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 24PROB

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