Question: This is a subjective question, hence you have to write your answer in the Text-Field given below. You need a 25 years fixed-rate mortgage to

This is a subjective question, hence you have to write your

answer in the Text-Field given below. You need a 25 years fixed-rate

This is a subjective question, hence you have to write your answer in the Text-Field given below. You need a 25 years fixed-rate mortgage to buy a new home for 65,00,000 INR. Your mortgage bank will lend you the money at an 8% APR compounded monthly. However, you can only afford monthly payments of 30,000 INR starting from the end of the first month onwards, so you offer to pay off any remaining loan balance at (time 6, i.e. end of 6th month) in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at 30,000 INR? [5] Question No: 07 This is a subjective question, hence you have to write your answer in the Text-Field given below. You need a 25 years fixed-rate mortgage to buy a new home for 65,00,000 INR. Your mortgage bank will lend you the money at an 8% APR compounded monthly. However, you can only afford monthly payments of 30,000 INR starting from the end of the first month onwards, so you offer to pay off any remaining loan balance at (time 6, i.e. end of 6th month) in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at 30,000 INR? [5]

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