Calculate the payments for the new loan.

Reference no: EM13692653

Crazy hours Construction purchased a new loader for $280,000 using a 25 annual end of year payment plan at 10% interest. At the end of 10 years they decided to refinance the loader with a new company with 15-year loan. They will pay off the balance due for the loader plus a penalty of 2% of the balance due for early payout of the loan. It will also cost them $1000 to originate the new loan. They will finish paying for the loader with the new loan for the remaining 15 years. Use an amortization table to determine the balance due at the end of 10 years and then calculate the payments for the new loan.

Reference no: EM13692653

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