payment. Find the size of the balloon payment—that is, the value of the mortgage after 10 years of payment.

The following cash flow diagram illustrates the case of a mortgage with balloon payment:

1.Start the Finance app: ISelect Finance

2.Return all fields to their default values:

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3.Enter the known TVM variables, as shown in the figure.

4.Highlight PMT and

tap . The PMT field shows –984.10. In other words, the monthly payments are $948.10.

5.To determine the balloon payment or future value (FV) for the mortgage after 10 years, enter 120 for N,

highlight FV, and tap .

The FV field shows –127,164.19, indicating that the future value of the loan (that is, how much is still owing) as $127,164.19.

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Finance app

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