Question: 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.
1- what is the monthly payment?
2- how much the first payment is interest and how much is principal?
3- 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 ?
4- What is the monthly payment of this new loan?
5- how much of the first payment is interest?
6- Should Walsh re-finance the loan?