Chandler and Joey ditched the virtual cafe idea as too cerebral and decide to buy Joey’s uncle’s Bike shop instead, for $150,000. How uncle is willing to extend the pair, “seller financing”, at a 6% nominal rate. The terms of the loan would require them to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What will be their monthly payment?
A). $2,468.58
B). $2,598.50
C). $2,988.28
D). $2,338.65
E). $2,208.73
Loan amount = Present value of future monthly payments = monthly payment * [1-(1+i)^-n]/i
i = interest rate per period
n = number of periods
=>
=>
monthly payment * [1-(1+0.06/12)^-48]/(0.06/12) + 50000/(1+0.06/12)^48 = 150000
=>
monthly payment = 2598.50
hence choose B)
Chandler and Joey ditched the virtual cafe idea as too cerebral and decide to buy Joey’s...
Your uncle will sell you his bicycle shop for $170,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?
10. Your uncle will sell you his bicycle shop for $250,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan wouldrequire you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month.What would your equal monthly payments be?
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...