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3. 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%.
3. 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? (20 points 5/5/5/5) N = I = PV = PMT = (6.5%/12,20*12,450000)=$3,355.08 FV = (6.5%/12,5*12,-3355.08,450000)= $385,150.98 P/Y = b. After five years, APR falls to 4.75%. How much is the balance due on the loan? N = I = PV = PMT = FV = P/Y = C. How much of the loan principle has XYZ Company paid off during the first five years? d. 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 =
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