Question: Jadele, Inc., borrowed $12.8 million at 7.2% compounded quarterly for 30 years for construction of a new manufacturing facility. After making 42 quarterly payments of

Jadele, Inc., borrowed $12.8 million at 7.2% compounded quarterly for 30 years for construction of a new manufacturing facility. After making 42 quarterly payments of $261,094.80, it plans to refinance the existing loan for an amount that includes an additional $1.1 million for expansion. Jadele can refinance at 6.6% compounded quarterly for 25 years, with refinancing costs of $10,000 added to the refinanced amount.

(a) Find the total amount refinanced.

(b) Find the new quarterly payment.

(c) If Jadele decides to continue to pay $261,094.80 per quarter on the refinanced amount, how long will it take to pay off the new loan?

Step by Step Solution

★★★★★

3.25 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Jadele a R 26109480 i 0072 4 0018 n 4 30 120 k 42 10... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1386-M-C-L-A-D(3298).docx

120 KBs Word File

Students Have Also Explored These Related Calculus Questions!

Find the present value that will grow to $25,000 if interest is 3.2% compounded quarterly for 11 quarters.

In order to upgrade its equipment, Simon Reilly Chemicals (SRC) borrowed $2.8 million at 6.4% compounded quarterly for 20 years. After making 18 quarterly payments of $62,297.39, SRC plans to...

1. A loan of $10,000 is to be amortized with 10 equal quarterly payments. If the interest rate is 6%, compounded quarterly, what is the periodic payment? 2. A recent graduate's student loans total...

MNGT 4781: Strategic Management Form 10-K: Annual Report Pursuant to Section 13 or 15d of The Securities Exchange Act of 1934: QUALCOMM Incorporated Assignment 2 By U.S. Securities and Exchange...

Hi, I need help with this document. It is due 06/06/2017 11:59, Please help me! Project Six: Acquisition Contingencies Background In 2011, a construction materials manufacturing company (Construct)...

Please just help me correct the ones that I got wrong. Please, and thank you. The corrections are in the file seboprincess00322885. I made some corrections already so if you come across them, just...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

CHAPTER 9 ? On Page 4 of your UBPR, locate the data for the balance sheet. You will use this data to calculate k (leverage) using ?Total Assets? (not ?Total Earning Assets?). Assume the...

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

2. Investment proposals A and B have the following cash flows. End of Years 2 3000 6000 Proposal A (Rs) B (Rs) 0 -10 000 -10000 1 3000 6000 3 7000 3000 4 6000 3000 Compare the Present worth of A with...

1. Find the cost of operating a 1.50-A motor on a 110-V circuit for 2.00 h at $0.08/kWh. 2. Find the cost of operating a 2.50-A motor on a 110-V circuit for 3.00 h at $0.07/kWh. 3. Find the cost of...

What are the main stages of recruitment and selection?

Consider reasons why confirmatory bias and the law of small numbers may matter in health care.

Find the exact 95% confidence limits. Consider a data set where three out of three people are found with an allele.

Use the method of support to estimate 95% confidence limits and compare your results with Exercise 35. Consider a data set where three out of three people are found with an allele.

A person wins the lottery the fifth time he plays. Does the value q = 0.001 for the probability of success lie within the 99% confidence limits? In the above situation, find the probability of a...

Help and explanation for homework question For the Data presented below; what is the value of SS Between-People? Sub Purple (X - M) (X-M)^2 White (X - M) (X-M)^2 Mean People 1 75 0 71 O O 73.00 2 76...

Construct a Binomial probability distrubtion table using n = 5 and p = {1.21. Next, record the mean and standard deviation of the distribution below. Where necessary, round all numbers to four...

North Cascades Company is considering a new project that will require an initial cash investment of $250,000. The project will produce no cash flows for the first two years. The projected cash flows...