Assume You Have Taken Out a Partially Amortizing Loan for $325,000

question 2

Multiple Choice

Assume you have taken out a partially amortizing loan for $325,000 that has a term of 7 years, but amortizes over 30 years. Calculate the balloon payment at maturity (Year 7) if the interest rate on this loan is 4.5%.

• A) $1,646.73
• B) $118,468.21
• C) $282,835.42
• D) $324,572.02

---

Definitions:

Crowdfunding Site

A website that allows individuals or organizations to raise money for projects, causes, or ventures by soliciting small contributions from a large number of people online.

Corporate Partners

Businesses or organizations that engage in a relationship for mutual benefit, often involving financial or promotional support.

Higher Education Institutions

Colleges, universities, and other institutions that provide tertiary education leading to degrees or certificates.

Two-Way Engagement

A form of communication where both parties, such as a company and its customers, actively participate in dialogue and feedback.