i. Determine the outstanding balance on your current loan for the remaining 240 payments.  ii. If you refinance your loan at an annual rate of 7 percent, calculate the new monthly  payment for another 20 years.

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
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Ten years ago you took out $200,000, 30-year mortgage with an annual interest rate of 9 
percent and monthly payments of $1,609.25. But since you took out that loan, interest rates 
have dropped. 
i. Determine the outstanding balance on your current loan for the remaining 240 payments. 

ii. If you refinance your loan at an annual rate of 7 percent, calculate the new monthly 
payment for another 20 years. 

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