Dave currently makes monthly payments towards a 21 - year mortgage of $300000 with an interest rate of 14.4% compounded monthly. After making the 67th payment, Dave refinanced his mortgage at an interest rate of 8.4% compounded monthly and renegotiated his term. This resulted in Dave's monthly payments being reduced by $500. How large will Dave's final drop payment be?
Dave currently makes monthly payments towards a 21 - year mortgage of $300000 with an interest rate of 14.4% compounded monthly. After making the 67th payment, Dave refinanced his mortgage at an interest rate of 8.4% compounded monthly and renegotiated his term. This resulted in Dave's monthly payments being reduced by $500. How large will Dave's final drop payment be?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Dave currently makes monthly payments towards a 21 -
year mortgage of $300000 with an interest rate of
14.4% compounded monthly. After making the 67th
payment, Dave refinanced his mortgage at an interest
rate of 8.4% compounded monthly and renegotiated his
term. This resulted in Dave's monthly payments being
reduced by $500. How large will Dave's final drop
payment be?
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