Question: answer provided is incorrect You would like to buy a house that costs $400,000. You have $60,000 in cash that you can put down on

answer provided is incorrect

You would like to buy a house that costs $400,000. You have $60,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering a 25-year mortgage that requires annual payments and has an interest rate of 7% per year. You can afford to pay only $28,590 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $340,000. At the end of the mortgage (in 25 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will this balloon payment be? The balloon payment is $ (Round to the nearest cent.)

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