(Complex stream of cash flows) Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing that is, a loan from the current owners of the agency. The loan will be for $ 2400000 financed at an APR of 10 percent compounded monthly. This loan will be paid off over 8 years with end-of-month payments, along with a $ 500 000 balloon payment at the end of year 8. That is, the $ 2.4 million loan will be paid off with monthly payments, and there will also be a final payment of $ 500 000 at the end of the final month. How much will the monthly payments be?

a. How much of the loan will be paid off by the final $500,000 payment?

b. How much of the loan must be paid off by the equal monthly payments?

c. How much will the monthly payments be?