Purchasing a house is probably the largest single financial commitment the average person will ever make. When purchasing a house, one if the most important consideration is financing.

Financing at 8.5% per year, $20,000 for down payment and a balloon payment in year 10

Info: 1. Price of the house: $150,000 2. House will be sold in 10 years for $170,000 (net proceeds after selling expenses) 3. Taxes and insurance (T&I) are $300 per month 4. Amount available: maximum of $40,000 for down payment, $1,600 per month, including T&I 5. New loan expenses: origination fee $350; escrow fees $150, other costs $300 6. Any money not spent on the down payment or monthly payments will earn tax-free interest at 0.25% per month

QUESTION: What is the amount of money remaining at the end of a 10 year period?

Please provide a cashflow diagram.