PLEASE HELP Beatrice is considering a 3/27 balloon mortgage with an interest rate of 4.25% to purchase a house for $197,000. What will be her balloon payment at the end of 3 years?
A) $186,598.50
B) $159,245.98
C) $150,118.49
D) $225,368.29 @studyshark2000 please? Or anyone

Question

PLEASE HELP Beatrice is considering a 3/27 balloon mortgage with an interest rate of 4.25% to purchase a house for $197,000. What will be her balloon payment at the end of 3 years? 
A) $186,598.50
B) $159,245.98
C) $150,118.49
D) $225,368.29 @studyshark2000 please? Or anyone

amistre64 · Answer

the remaining balance ... ive got a formula that can determine it but previous interactions havent been that productive at times .

$$B_n=Bk^n-P\frac{k^n-1}{k-1}$$

we would have to use the formula to determine payments, and then we can use it to determine the balance after 3 years

amistre64 · Answer

$$P=Bk^{27*12}\frac{k-1}{k^{27*12}-1}$$
using this to find the 3*12th balance period

$$B_{36}=Bk^{36}-Bk^{324}\frac{k-1}{k^{324}-1}\frac{k^{36}-1}{k-1}$$
$$B_{36}=Bk^{36}(1-k^{288}\frac{k^{36}-1}{k^{324}-1})$$

anonymous · Answer

@amistre64 thankyou but i have no calculator on me to try and solve the equation and i wouldnt know where to start either but thankyou

amistre64 · Answer

i know, how are you spose to work the solutions tho?  you have to have some tools available to you for the course.

amistre64 · Answer

tables even ... but those are a pain

amistre64 · Answer

and you say wolfram doesnt open for you ?

anonymous · Answer

I know, youre right. Its just my sister needed it for geometry and i gave it to her. Forgot to ask for it back and i always forget to ask for it until i need it. && whats wolfram? @amistre64

amistre64 · Answer

its an online math calculator, or at least thats what i use it for

amistre64 · Answer

i use it to run the calculations with so i dont have to make so many erros imputing it into a calculator http://www.wolframalpha.com/input/?i=197000%281%2B.0425%2F12%29%5E%2836%29-1024%28%281%2B.0425%2F12%29%5E%2836%29-1%29+%2F+%281%2B.0425%2F12-1%29

amistre64 · Answer

i was trying to think of a way to approximate it or at least narrow it down ..  assuming no interest

197000/27,  times 3 = 21889

197000 - 21889 is the least amount owed if there was not interest applied.

so the solution has to be greater than 175111, but that just gets rid of 2 of them

amistre64 · Answer

ive got no good reason for this next approach other than it gets us closer to the solution

4.25% is about 4%

175111(1.04) = 182115.44

anonymous · Answer

@amistre64 i knooow maybe i should just put $186,598.50?

amistre64 · Answer

id be ok with that ..... no argument from me :)