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What would your equal monthly payments be

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Your uncle will sell you his bicycle shop for $500,000, with "seller financing," at a 6.00% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for four (4) years, and then make an additional final (balloon) payment of $75,000 at the end of the last month.

a. What would your equal monthly payments be?

b. How much of your second monthly payment is interest?

c. How much of your second monthly payment is repayment of principal?

Reference no: EM133111263

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