Your employer is planning to create a new product line, including completely new operations. The up$-$front investment will be partly financed with a five$-$year term loan from a bank, in the amount of $$2,500,000\mathrm{.}00.$ This term loan will require fixed payments $($either monthly or semi$-$annual $[$every six months$])$ until maturity. The loan officer believes that an EAR of $4\mathrm{.}65\%$ is appropriate.

a$.$ What would the firm$$s semi$-$annual payments be$?$

b$.$ What would the firm$$s monthly payments be$?$

c$.$ What total payments would the firm make over one year with either semi$-$annual or monthly payments? $($Just add up the payments, ignore any time$-$value$-$of$-$money issues.$)$

d$.$ Compare your two answers to Question $2.$c$.$ Is one total larger than the other? Explain! $($No need to calculate anything, explain in words.$)$