What quarterly payment will the friend make on the loan

Reference no: EM133251812

Question - A successful businessman is selling one of his fast food franchises to a close friend. He is selling the business today for $2,586,800.00. However, his friend is short on capital and would like to delay payment on the business. After negotiation, they agree to delay 3.00 years before the first payment. At that point, the friend will make quarterly payments for 18.00 years. The deal calls for a 5.68% APR "loan" rate with quarterly compounding. What quarterly payment will the friend make on the loan?

Reference no: EM133251812

Questions Cloud

How much is the down payment : The shop requires a 15% down payment. Then he will need to make 20 monthly payments of $120. How much is the down payment

Differentiate between an ordinary annuity and annuity due : Differentiate between an ordinary annuity, and annuity due, and clearly indicate which one of the two is apparent in this scenario

What is the expected return for willis woozy : For Willis's Woozy Weddingplanners, PLC., Given this information, what is the Expected (excess) Return for Willis's Woozy Weddingplanners, PLC

What is the sharpe ratio of this strategy in annual terms : The risk free rate is 2% and the market risk premium is 4%, both per annum. What is the Sharpe ratio of this strategy in annual terms

What quarterly payment will the friend make on the loan : The deal calls for a 5.68% APR "loan" rate with quarterly compounding. What quarterly payment will the friend make on the loan

What is the monthly payment for a constant payment mortgage : What is the monthly payment for a Constant Payment Mortgage (CPM) loan? What will the total of payments be for the entire 30 year period

Managing project process and assembly line process : Describe the differences in managing a project process and an assembly line process.

Describe a risk management case : Describe a risk management case, minimum one page, about a financial services company. Identify what went wrong; what risk class was it

Estimator budget : What should the estimator budget for a 5,000 SF fire station in Waco, Texas? (Order of Magnitude Cost per sf)

User Account

All Pages