Question

Miranda obtains a $296,000 15/5 balloon mortgage with a rate of 6.75%. What will her monthly payments be?

Answer 1

Miranda's monthly payments are $2614.64

Explanation:

`(p*r*(1+r)^(n))/((1+r)^(n)-1)`

Here, p = 296000

n = 15 years =
`15*12=180`

r = 6.75/12/100 =0.0056

Putting these values in formula we get,

`(296000*0.0056*(1.0056)^(180))/((1.0056)^(180) -1)`

=
`(296000*0.0056*2.7324)/(2.7324-1)`

= $2614.64

So, her monthly payments are $2614.64.

Answer 2

The correct answer for this question is this one: "A. $3398.79"
Miranda obtains a $296,000 15/5 balloon mortgage with a rate of 6.75%. Her monthly payments will be $3398.79
These are the following choices as seen from other source:
A. $3398.79
B. $2786.18
C. $2619.33
D. $2340.75

Hope this helps answer your question and have a nice day ahead.