text: search
  
  # You owe \$200,000 on a mortgage loan You wish to repay the loan with
  
  Content type
  User Generated
  Rating
  Showing Page:
  1/2
  You owe \$200,000 on a mortgage loan. You wish to repay
  the loan with 10 equal payments, one at the end of each
  year for the next 10 years, and a separate final \$80,000
  balloon payment at the end of 11 years. What is the
  appropriate amount of each of the 10 equal annual
  payments? The interest rate is 8% compounded annually.
  Instrument BA II Plus calculator.
  Solution
  This problem can be solved in two steps using the TI BA II
  Plus.
  1) We need to find the PV of the \$80,000 balloon payment
  made at the end of the year 11 with interest rate 8%.
  FV = \$80,000
  N = 11
  I/Y = 8
  Solving for PV we get = \$34,310.63
  We will subtract the PV of the balloon payment from our
  mortgage loan of \$200,000 to get:
  \$200,000 - \$34,310.63 = \$165,689.37 This is the amount
  we need to pay in 10 equal end of year instalments.
  2) Solving for the annual payments:
  
  Showing Page:
  2/2
  
  Unformatted Attachment Preview
  You owe \$200,000 on a mortgage loan. You wish to repay the loan with 10 equal payments, one at the end of each year for the next 10 years, and a separate final \$80,000 balloon payment at the end of 11 years. What is the appropriate amount of each of the 10 equal annual payments? The interest rate is 8% compounded annually. If possible, please explain how to find answer using Texas Instrument BA II Plus calculator. Solution This problem can be solved in two steps using the TI BA II Plus. 1) We need to find the PV of the \$80,000 balloon payment made at the end of the year 11 with interest rate ...
  Purchase document to see full attachment
  User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
  
  ### Review
  
  Anonymous
  Just what I needed. Studypool is a lifesaver!
  
  Studypool
  4.7
  Trustpilot
  4.5
  Sitejabber
  4.4
metadata: {"found_math": false, "script_math_tex": 0, "script_math_asciimath": 0, "math_annotations": 0, "math_alttext": 0, "mathml": 0, "mathjax_tag": 0, "mathjax_inline_tex": 0, "mathjax_display_tex": 0, "mathjax_asciimath": 0, "img_math": 0, "codecogs_latex": 0, "wp_latex": 0, "mimetex.cgi": 0, "/images/math/codecogs": 0, "mathtex.cgi": 0, "katex": 0, "math-container": 0, "wp-katex-eq": 0, "align": 0, "equation": 0, "x-ck12": 0, "texerror": 0}