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Bert decided to sell his company, Smith Brothers, on a loan contract that would provide him equal monthly payments for 5 years starting next month.
Bert decided to sell his company, Smith Brothers, on a loan contract that would provide him equal monthly payments for 5 years starting next month. The buyer, Christine, offered $2,000,000 and Bert countered at $2,500,000. Being fair-minded people, they agreed to meet exactly in the middle on the sale price and the contract reflected a 6.30% annual interest rate since Bert was providing this payment method rather than receiving all the money up front. How much will Bert receive each month from Christine under this agreement?
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