A successful businessman sells one of his fast food franchises to a close friend. Today he is selling the business for $2,151,200.00. But his friend has insufficient capital and wants to delay payment for work. After negotiation, they agree to defer until 4.00 years before the first payment. At that point, the friend will make quarterly payments for 14.00 years. The agreement stipulates an APR "loan" rate of 5.04% with compounding quarterly interest.

Required:

 How much will the friend pay for the loan quarterly?

Answer rating: 100% (QA)

To find the quarterly payments we can use the formula for the loan payment which ... View the full answer