Question: Best Technologies would like to purchase a machine at a cost of $400,000. The bank is willing to lend 80% of the purchase price at

Best Technologies would like to purchase a machine at a cost of $400,000. The bank is willing to lend 80% of the purchase price at a rate of 6% p.y.c.m (per year compounded monthly)The machine has a life of 10 years. If Best Technologies agrees to pay $2,000 at the end of each month for the life of the machine and a balloon payment at the end of the period, what will be the amount of the balloon payment? Show working.

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