How much will the monthly payments be

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Reference no: EM131488148

Question: (Complex stream of cash flows) Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing-that is, a loan from the current owners of the agency. The loan will be for $2 million financed at an APR of 7 percent compounded monthly. This loan will be paid off over 5 years with end-ofmonth payments, along with a $500,000 balloon payment at the end of year 5. That is, the $2 million loan will be paid off with monthly payments, and there will also be a final payment of $500,000 at the end of the final month. How much will the monthly payments be?

Reference no: EM131488148

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