Asked Oct 30, 2019

Chrome Co. borrows $1,665,000 at an interest rate of 7.32% APR monthly with equal monthly payments of $15,265 and a 4 year stop.

What is the balloon payment due, after the regular monthly payment, at the end of year 4?


Expert Answer

Step 1

PV of loan = $ 1,665,000; Annuity payment, A = 15,265;

Period = 1 month

interest rate per period, r = 7.32% / 12 = 0.0061

n = number of periods...

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