John borrowed 100 000 from a bank 4 years ago. The annual interest rate is 6% and the repayment schedule is based on monthly annuity payments. There is still 6 years to fully repay the debt. Now John approached the competitive bank and asked for possibilities to refinance. The bank was sympathetic to the request and offered 4% as an interest rate. However, the refinancing fee is 1.5% of the loan balance.

Comprehensive illustrative problem: mira's store on february 1 20a4 mica delaman opened astore that sells school supplies her main customer are the students and teachers of happy students school that is situated in front of her store. mira wanted to know the financial position of mira's store. mira knew you were studying accounting. so she asked for . 1. to start her business mira's opened a checking account in the name of mira's store . the statement of account from the bank shows that the checking account has a balance of 31,535 of december 31,20a4