Answer:
957.62
Step-by-step explanation:
Given the house price, P=$197,000, [tex]n=12\times 30=360, i=0.0415/12[/tex], the monthly payments, M, can be calculated as:
[tex]M=P[\frac{i(1+i)^n}{(1+i)^{360}-1}]\\\\M=[\frac{\frac{0.0415}{12}(1+\frac{0.0415}{12})^360}{(1+\frac{0.0415}{12})^{360}-1}]\\\\M=957.62[/tex]
Hence, the monthly payment of the baloon mortgage is $957.62
