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(Solved): Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller fina ...



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 ,300 ,000 financed at an APR of 10 percent compounded monthly. This loan will be paid off over 4 years with​ end-of-month payments, along with a $ 400 ,000 balloon payment at the end of year 4. That​ is, the $ 2.3 million loan will be paid off with monthly​ payments, and there will also be a final payment of $ 400 000 at the end of the final month. How much will the monthly payments​ be? a. How much of the loan will be paid off by the final ​$400 ,000 ​payment? b. How much of the loan must be paid off by the equal monthly​ payments? c. How much will the monthly payments​ be?



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