A successful businessman is selling one of his fast food franchises to a close friend. He...

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A successful businessman is selling one of his fast food franchises to a close friend. He is selling the business today for $2,425,400.00. However, his friend is short on capital and would like to delay payment on the business. After negotiation, they agree to delay 5.00 years before the first payment. At that point, the friend will make quarterly payments for 20.00 years. The deal calls for a 6.92% APR "loan" rate with quarterly compounding. What quarterly payment will the friend make on the loan? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A successful businessman is selling one of his fast food franchises to a close friend. He is selling the business today for $2,425,400.00. However, his friend is short on capital and would like to delay payment on the business. After negotiation, they agree to delay 5.00 years before the first payment. At that point, the friend will make quarterly payments for 20.00 years. The deal calls for a 6.92% APR "loan" rate with quarterly compounding. What quarterly payment will the friend make on the loan? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint

Answer rating: 100% (QA)

To calculate the quarterly payment we can use the formula for the present value of an annuity ... View the full answer