Walsh University is considering building a new Student Center. The cost building this new Students center is estimated to be 20000000. Walsh is asking a local bank to finance the construction. The annual bank`s loan is to be paid back in ten years based on monthly payments.

• What is the monthly payment?
• How much the first payment is interest and how much is principal?
• After four years of monthly payments Walsh will re-finance the balance of the loan at another local bank with a new six years, 9% interest loan. The cost of re-financing is 280000 which should be paid in advance?
• What is the monthly payment of this new loan?
• How much of the first payment is interest?
• Should Walsh re-finance the loan?