You would like to buy a house that costs $350,000. You have $50,000 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 you a 30-year mortgage that requires annual payments and has an interest rate of 9% per year.
You can afford to pay only $28.320 per year The bank agrees to allow you to pay this amount each year, yet still borrow $300,000.
At the end of the mortgage (in 30 years you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will be this balloon payment?
The balloon payment is $ (Round to the nearest dollar.)