I'm trying to calculate how much you can borrow for a given monthly payment, including a balloon payment, where the balloon payment is given as a percentage of the final loan amount.
The calculation I have for a set balloon amount (rather than percentage) is:
L = Loan Amount, B = Balloon Payment, M = Monthly Payment, R = Monthly Interest, N = Number of Monthly Payments
L = (B + M x ((1 + R)^N - 1 / R)) / (1 + R)^N
How can I calculate the Loan Amount if the Balloon payment is given as a percentage of the loan?