What are the monthly payments that kemo must make

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Reference no: EM131346524

The Kemo Limited company would like to purchase a new office building. It has taken out a $500,000 mortgage loan for 15 years with a quoted APR of 8.4% (with monthly compounding.).

a) What are the monthly payments that Kemo must make?

b) If Kemo’s business grows, it will be able to repay the remaining portion of the mortgage loan with one lump-sum payment at the end of the fifth year. How much will this lump-sum payment be?

Reference no: EM131346524

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