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Energy Max engineering constructed a small office building for their firm 5 years ago. They financed it with bank loan for $450000 over 15 years at 6% interest with quarterly payment and compounding. The loan can be refinanced through an insurance firm for 4% over 20 years) -- still with quarterly compounding and payments. The new loan has a 5% loan initiation fee, which will be added to the new loan.
a) What is the balance due on the original mortgage (20 payments have been made in the last 5 years)?
b) How much will Energy Max's payment drop with the new loan?
c) How much longer will the proposed loan run?
mary has variable costs equal to vc y2 f where y is the number of bouquets she sells per month and where f is the
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