As Production Manager of an Industrial Production Company, you anticipate that an old piece of production machinery will need replacing in four years. You meet with the Companys CEO and propose to create a saving account to accumulate a sum to use as down payment when the necessary new machinery will be purchased, and then get a loan from a Lending Institution to pay the balance of the price of the new machinery.

The data you present to the CEO are:

A) For accumulating the down payment sum:

Create a saving account at a Saving Institute which will guarantee an APR of 4.5%

For four years, deposit in this saving account the sum of $ 3,000 every month, increasing by $ 200 every month

B) Assume a loan to cover the balance of the price for the new machinery:

The anticipated price of the new machinery is $ 1,000,000

The proposed Lending Institute will require an APR of 6.4%

The loan will be repayable in equal monthly payments over a period of 7 years

QUESTION: what is the amount to be paid every month to the Lending Institution for repaying the loan ? (show the calculations)