Calculating the Cost of Borrowing and Balloon Payment

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Calculating the Cost of Borrowing and Balloon Payment

Prompt: Similar to the example in your text, calculate and present in a chart the cost of borrowing based upon: ? Principal borrowed of 89,000 ? 12 Annual payments a year ? Monthly payments are $1,100 ? 8.75% interest rate ? 72 total payments ? Period interest rate 1% ? What would be the final payment/balloon payment due on month 72 to be settled with this obligation? Healthcare Finance is very complicated and it is critical to understand the revenue cycle. Taking into consideration all learned to date an additional element that impacts payments which are necessary for operations are the value based health care legislation. Please research and define what is value based reimbursement and programs such as MACRA and others. Describe how quality outcomes often associated or bench marked against your peers may additionally impact your reimbursement rate for services provided.

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