Determine the monthly payment and balloon payment for a $100,000 loan
where the loan balance is paid off after 4 years.
The amortization length is the amount of time that the payment is set to and the loan length is
for the amount of time until the balloon payment is due. This is a common way that commercial and
business loans are structured. Usually, the loan is refinanced when the balloon payment comes due.
For example, a 100k loan with 5% interest
and amortization set to interest only would have a payment of 417/month. However, the loan
the remaining balance of 100,000 would need to be paid off or refinanced after 4 years.