Q2) A new office buildi t time the firm quarterly. The obtains a bank loan for $100,000 with a 12% annual interest rate. ing was constructed five years ago by a consulting engineering irm. pounded com torms of the loan call for equal quarterly payments to repay the loan in 10 years also allows for its prepayment at any-time without penalty ue to internal cha per year, com nges in the firm, it is now proposed to refinance the loan through an company. The new loan would be for 20 years term with an interest rate of 8% carge often describes as "five point loan fee") which would be added to the new loan. B) What is the difference between the equal quarterly payment on this present hank pound quarterly. The new equal quarterly payment would ropayable loan in . The insurance company requires the payment of a 590 loan initiation 20 years period A) What is balance due to the original mortgage if 20 payments have been made in the last five years? loan and the proposed insurance company loan