29, Annuity Present Values year? The annuity's first payment occurs 6 years from today. The discount rate is 8 percent for Years 1 through 5 and 11 percent thereafter. What is the value today of a 15-year annuity that pays $750 a 30. Balloon Payments Amanda Rice has arranged to purchase a $725,000 vacation home in the Bahamas with a 20 percent down payment. The mortgage has a 5.4 APR com pounded monthly and calls for equal monthly payments over the next 30 years. Her first payment will be due one month from now. However, the mortgage has an 8-year balloon payment, meaning that the balance of the loan must be paid off at the end of Year 8, There were no other transaction costs or finance charges. How much will Amanda's balloon payment be in 8 years