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Your uncle will sell you his bicycle shop for $170,000, with "seller financing," at a 6.0%...

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?

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Answer #1

rate positively ..

we have to use financial calculator to solve this
put in calculator -
FV 50000
PV -170000
I 6%/12 0.50%
N 4*12 48
compute PMT $3,068.20
therefore monthly payment = $3,068.20
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