*Advance Algebra With Financial Applications*
[Work Is Shown]
$600,000
25/5 balloon
5.9% annual rate

Monthly Payment: $3,829.21
Balloon Payment: $541,463.72

What is the total cost of this balloon mortgage rounded to the nearest dollar?
$545,293

$771,216

$919,010

$541,464
------------
*MY WORK *
$3,829.21= 600,000 0.059(1+0.059)^(25*t) ?

Question

*Advance Algebra With Financial Applications*
[Work Is Shown]
$600,000 
25/5 balloon 
5.9% annual rate 

Monthly Payment: $3,829.21 
Balloon Payment: $541,463.72 


What is the total cost of this balloon mortgage rounded to the nearest dollar?
 $545,293

 $771,216

 $919,010

 $541,464
------------
*MY WORK *
$3,829.21= 600,000 0.059(1+0.059)^(25*t) ?

amistre64 · Answer

they already give the monthly payment and the ballon payment

amistre64 · Answer

how many payments are made in 5 years?

amistre64 · Answer

3829.21(12)(5) + 541463.72 = total payments

amistre64 · Answer

now, does total cost mean total interest?  if so subtract the inital loan amount

amistre64 · Answer

it appears that its just the total payments ...

anonymous · Answer

Thank you :D