Question: Roger Sterling has decided to buy an ad agency and
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 $2,000,000 financed at a 7 percent nominal annual interest rate. This loan will be paid off over five years with end-of-month payments along with a $500,000 lump-sum 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?
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