Assume You Have Taken Out a Partially Amortizing Loan for $1,000,000

question 4

Multiple Choice

Assume you have taken out a partially amortizing loan for $1,000,000 that has a term of 7 years, but amortizes over 20 years. Calculate the balloon payment if the interest rate on this loan is 9%.

• A) $8,997
• B) $559,199
• C) $825,679
• D) $936,405

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