A $500,000 corporate loan is supposed to be repaid over 10 years in the amount of $15,227.80 at the end of each quarter, compounded quarterly at an interest rate of 4% per year. However, after five years, the company refinanced the loan at 2% per annum, compounded quarterly, for another ten years and added a refinancing fee of $500 to the amount of the refinanced loan. Determine the new quarterly payment amount for the refinanced loan and round your answer to the nearest cent.

A $500,000 corporate loan is supposed to be repaid over 10 years in the amount of $15,227.80 at the end of each quarter, compounded quarterly at an interest rate of 4% per year. However, after five years, the company refinanced the loan at 2% per annum, compounded quarterly, for another ten years and added a refinancing fee of $500 to the amount of the refinanced loan. Determine the new quarterly payment amount for the refinanced loan and round your answer to the nearest cent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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