John would like to know how the down payment and 1st installment for the sale of his business will be treated for tax purposes. The business was sold to a third party for $6,000,000 on February 1, 2020. The terms of the agreement are: 20% down payment, 10-year, 4.5% note that will startpayment quarterly on May 1, 2020. The tax basis is $1,450,000.

What is the return of basis in a 10 year span with 4.5% note