Question

Assume you have taken out a balloon mortgage loan for $2,500,000 to finance the purchase of a commercial property. The loan has a term of 5 years, but amortizes over 25 years. Calculate the balloon payment at maturity (Year 5) if the interest rate on this loan is 4.5%.
A. $5,637.99
B. $13, 895.82
C. $2,196,447.59
D. $2,495,479.19

Answer

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