Math Problem Statement
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 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 $75,000 at the end of the last month. What would your equal monthly payments be?
Solution
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Math Problem Analysis
Mathematical Concepts
Finance
Amortization
Interest Calculation
Formulas
Amortization formula with balloon payment
Theorems
-
Suitable Grade Level
Advanced
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