Alison Pearson has decided to buy an existing business and is going to finance the purchase with vendor financing (a loan from the current owners of the business).
The loan will be for $2,100,000 financed at a 8 % nominal annual interest rate. This loan will be paid off over 10 years with end-of-month payments along with a $600,000 ?lump-sum payment compounded annually at the end of year 10.
How much will the monthly payments be?