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Please show steps by hand and not solve in excel. Thank you Problem #2: Your company has a $500,000. loan for a new robotic machining
Please show steps by hand and not solve in excel. Thank you
Problem #2: Your company has a $500,000. loan for a new robotic machining center it just bought. The interest rate for this loan is 6% per year and your company's initial plan is to pay for the loan in exactly 30 years. Annual payment is made at the end of each year. (a) What is the Annual Payment your company has to pay at the end of each year? (b) Based on the initial annual payment calculated above, your company has now decides that it can afford to pay $50,000 per year, which is more than the initial annual payment. By paying $50,000 annually, how many payments (years) will the loan of $500,000. Be paid off? Assuming the same interest rate is used, i.e. 6% annually. (c) By paying $50,000 annually, how much is the last paymentStep by Step Solution
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