Question

Bentley and Lilly have been accepted for a 25/7 balloon mortgage at 4.48%. If Bentley and Lilly finance $387,300, how much will they pay in principal and interest over the life of the loan?

Option A: $404,651.04
Option B: $498,607.42
Option C: $499,795.17
Option D: $644,502.00

I've tried plugging it into a few mortgage balloon payment calculators and I'm still off from any of the answers. I used https://www.fmbanknym.com/mortgage-balloon-payment-calculator to figure it out and I'm not sure if I plugged in the wrong numbers or what.

I'll post what I got from the calculator!

Answer 1

Look closer at that imge redsky, look at `Total Paid` , see anything familiar about it to your answers?

Answer 2

I see where you messed up on this, I'm guessing you thought you were suppose to look at `Balloon Payment Amount`

Answer 3

I did see that but it's off by 4 points since "total paid" is $498,607.82 and my closest answer would be $498,607.42 (option B). Both answers are off by 4 points which is why I wasn't sure if I was doing something wrong or that's actually the answer? I'm a little cautious in choosing it because I'm still off and I'm not exactly sure why the answer is off by 4 points?

Answer 4

It could be absolutely possible that the teacher got the answer typed incorrectly, but I'll look into it more and see if I can get anything different.

Answer 5

It's actually $499,795.17 which I'm not quite sure how they got that since none of the calculators I used gave an answer even remotely near that. Other than the question having a typo in one of the answers, my teacher excused me from the answer thankfully. Thank you for the help though!