Question

In: Finance

XYZ Company borrows $450,000 to purchase a piece of capital equipment. The term of the loan...

  1. XYZ Company borrows $450,000 to purchase a piece of capital equipment. The term of the loan is 20 years at an APR of 6.5%. What is the monthly payment?  
    1. N =

I =

PV =

PMT =

FV =

P/Y =

  1. After five years, APR falls to 4.75%. How much is the balance due on the loan?

                        N =

                        I =

                        PV =

                        PMT =

                        FV =

                        P/Y =

  1.   How much of the loan principle has XYZ Company paid off during the first five years?

                       

  1.   After five years, XYZ realizes the machinery has a longer productive life than originally estimated; what would the loan payment be if it took out a new 20 year

loan?

                        N =

                        I =

                        PV =

                        PMT =

                        FV =

                        P/Y =

Solutions

Expert Solution

1.
N=20
I=6.5
FV=0
P/Y=12
PV=-450000
CPT PMT=3355.0791

2.
N=15
I=6.5
PMT=-3355.0791
FV=0
P/Y=12
CPT PV=385151.0438

3.
64848.9562

4.
N=20
I=4.75
FV=0
P/Y=12
PV=-385151.0438
CPT PMT=2488.9370

jeff jeffy answered 2 years ago
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