1. XYZ Company borrows $450,000 to purchase a piece of capital equipment. The term of the loan is 20 years at an APR of 6.5%. What is the monthly payment?
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2. After five years, APR falls to 4.75%. How much is the balance due on the loan?

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3. How much of the loan principle has XYZ Company paid off during the first five years?

4. After five years, XYZ realizes the machinery has a longer productive life than originally estimated; what would the loan payment be if it took out a new 20 year

loan?

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