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The company holds a 6-year loan of $230 000, at 7.5% compounded annually. Payments are made quarterly. After 15 months, the terms of the loan
The company holds a 6-year loan of $230 000, at 7.5% compounded annually. Payments are made quarterly. After 15 months, the terms of the loan are renegotiated at 5.5%, compounded monthly with monthly payments for the remainder of the 6-year term.
- Calculate the payment amount for the original loan.
- Calculate the accumulated value of the original loan principal after 15 months.
- Assuming that payments had been made, calculate the accumulated value of the payments made in the first 15 months.
- Calculate the outstanding balance of the original loan after 15 months.
- Calculate the number of payments in the renegotiated term to repay the loan.
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