Question

Need Help with Financial Algebra!

A store owner used a balloon mortgage to purchase an investment property. The terms are shown:

Balloon Mortgage

$700,000
15/3 balloon
2.7% annual rate

Monthly Payment: $4,733.71
Balloon Payment: $583,001.28


What is the total cost of this balloon mortgage rounded to the nearest dollar?

A. $753,415

B. $583,001

C. $852,068

D. $587,735

Answer 1

@ganeshie8 I feel like I ask for your help too much, but you explain things the best lol Think you could help me with this one?

Answer 2

$700,000
15/3 balloon

means, he took a loan of $700,000
and he needs to clear it in 3 years

Answer 3

So, total money paid towards monthly payments = 3*12*$4,733.71 = ?

Answer 4

sorry! I had to walk away from the computer! let me do that really quick (:

Answer 5

I ended up with 170,413.56

Answer 6

yes, add that to the balloon amount

Answer 7

you should get :
http://www.wolframalpha.com/input/?i=3*12*4733.71++%2B+583001.28

Answer 8

That's what I got! Round it off and I get A! Thanks!