Your uncle will sell you his bicycle shop for $255,000, 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 5 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?   a. $4,929.86     b. $4,721.85     c. $4,213.22     d. $4,192.26     e. $4,905.34

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Your uncle will sell you his bicycle shop for $255,000, 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 5 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?
  a. $4,929.86  
  b. $4,721.85  
  c. $4,213.22  
  d. $4,192.26  
  e. $4,905.34  
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