EnergyMax Engineering constructed a small office building for their firm 5 years ago. They finanaced it with a bank loan for $450,000 over 15 years at 6% intrest with quarterly payments and compounding. The loan can be repaid at any time without pentalty. The loan can be refinanced through an insurance firm for 4% over 20 years- Still with quarterly compounding and payments. The new loan has a 5% loan initiation fee, which will be added to the new loan.

(a) What is the balance due on the original mortgage (20 payments have been made in the last 5 years)?

(b) How much will EnergyMax's payments drop with the new loan?

(c) How much longer will the proposed loan run?