Five years ago, you acquired a 30-year loan of $130,550, charging 6.5% annual interest, compounded monthly, and requiring monthly payments. At this time, interest rates on 15-year loans have dropped to 2.2% APR, compounded monthly, and you wish to refinance what you still owe with a new loan at this new rate. (a) How much (in dollars) will you be refinancing? Round your answer to the nearest dollar. $ (b) How much (in dollars) will your new monthly payment be after refinancing? Round your answer to the nearest cent. $
Five years ago, you acquired a 30-year loan of $130,550, charging 6.5% annual interest, compounded monthly, and requiring monthly payments. At this time, interest rates on 15-year loans have dropped to 2.2% APR, compounded monthly, and you wish to refinance what you still owe with a new loan at this new rate. (a) How much (in dollars) will you be refinancing? Round your answer to the nearest dollar. $ (b) How much (in dollars) will your new monthly payment be after refinancing? Round your answer to the nearest cent. $
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:Five years ago, you acquired a 30-year loan of $130,550, charging 6.5% annual interest, compounded monthly, and requiring monthly payments. At this time, interest rates
on 15-year loans have dropped to 2.2% APR, compounded monthly, and you wish to refinance what you still owe with a new loan at this new rate.
(a) How much (in dollars) will you be refinancing? Round your answer to the nearest dollar.
$
(b) How much (in dollars) will your new monthly payment be after refinancing? Round your answer to the nearest cent.
$
Transcribed Image Text:OH
CH3
CH3
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