One of your financing options is a balloon loan on a \($200\),000 thirty-year mortgage with monthly payments and an interest rate of 7.5 percent per year.

Which of the following statements is correct?

a. Monthly payments are \($1\),500, and a balloon payment is \($200\),000 after 30 years.

b. Monthly payments are \($1\),500, and a balloon payment is more than \($200\),000 after 30 years.

c. Monthly payments are \($1\),250, and a balloon payment is \($200\),000 only after 30 years.

d. Monthly payments are \($1\),250, and balloon payment is \($200\),000 at any time the loan is paid off.