Please do not use excell, or any software. Only use equations/formulas.

Question 3 (30 points total). Duff's restaurant on Sheridan Drive has been hoping to expand their restaurant and parking lot for many years. They finally have an opportunity to expand by purchasing a portion of land from the self-storage business located adjacent to the restaurant's property. This property will cost $450,000 to acquire. Duff's will make a 20% down payment from their cash reserves and then will finance the remaining portion of this purchase with a commercial loan. The loan terms require Duff's to make equal quarterly payments at the end of each quarter for the next 10 years. The loan's interest rate is 7% compounded quarterly. (a) (6 points) How much will Duff's pay each quarter for their loan payment? (b) (6 points) Consider the 23" payment specifically. How much of this quarterly payment will be applied toward interest? (c) [12 points) After making the 27th loan payment, Duff's lender offers the restaurant an opportunity to refinance their loan at interest rate of 0.95% per month. If they accept this new loan they will repay the remaining balance in equal monthly payments over a 10 year period. What would Duff's new monthly loan payment be if they decide to accept this refinancing offer? (d) (6 points) Consider the 12" payment of the refinanced loan. How much of the monthly payment would be applied toward the loan principal