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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?
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Answer #1

Present value of the monthly payments plus the present value of the balloon payment will equal the price you paying for the shop.

solve for X

X = 4947.01

answered by: annanae
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