The company holds a 6-year loan of $230 000, at 7.5% compounded annually. Payments are made quarterly. After 15 months, the terms of the loan are renegotiated at 5.5%, compounded monthly with monthly payments for the remainder of the 6-year term.
a. Calculate the payment amount for the original loan.
b. Calculate the accumulated value of the original loan principal after 15 months.
c. Calculate the accumulated value of the payments made in the first 15 months.
d. Calculate the outstanding balance of the original loan after 15 months.
e. Calculate the number of payments in the renegotiated term to repay the loan.