A buyer is considering purchasing a 35-acre parcel in Apache Junction, Arizona for economic development. The parcel has a sales price of $1,700,000. The buyer agrees with the seller for purchasing the property with 15% down up front and paying off the balance in 12-months. If a bank is willing to provide 6% annual interest, compounded monthly, how much should the monthly deposit be into that account to pay off the desired balance to the seller?

A buyer is considering purchasing a 35-acre parcel in Apache Junction, Arizona for economic development. The parcel has a sales price of $1,700,000. The buyer agrees with the seller for purchasing the property with 15% down up front and paying off the balance in 12-months. If a bank is willing to provide 6% annual interest, compounded monthly, how much should the monthly deposit be into that account to pay off the desired balance to the seller?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 31P

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