In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an annual interest rate of 8%. After 10 years, they refinanced the unpaid balance of $151,847 at an annual rate of 5%. Use the table to find the monthly payments on the original loan; the monthly payments on the new loan; and the total amount saved on interest by refinancing. 8 Click the icon to view a table of monthly payments on a $1,000 loan. The monthly payments on the original loan are $ (Type an integer or a decimal.) The monthly payments on the new loan are (Round to the nearest cent as needed.) The total amount saved on interest by refinancing is $ (Round to the nearest cent as needed.) 8: Monthly Payment on a $1,000 loan Annual Interest Rate 3 4% $29.53 5% 29.97 6% 30.42 8% 31.34 10% 32.27 12% 33.21 Number of Years for the Loan 4 10 20 $22.58 $10.12 $6.06 23.03 10.61 6.60 23.49 11.10 7.16 24.41 12.13 8.36 25.36 13.22 9.65 26.33 14.35 11.01 30 $4.77 5.37 6.00 7.34 8.78 10.29
In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an annual interest rate of 8%. After 10 years, they refinanced the unpaid balance of $151,847 at an annual rate of 5%. Use the table to find the monthly payments on the original loan; the monthly payments on the new loan; and the total amount saved on interest by refinancing. 8 Click the icon to view a table of monthly payments on a $1,000 loan. The monthly payments on the original loan are $ (Type an integer or a decimal.) The monthly payments on the new loan are (Round to the nearest cent as needed.) The total amount saved on interest by refinancing is $ (Round to the nearest cent as needed.) 8: Monthly Payment on a $1,000 loan Annual Interest Rate 3 4% $29.53 5% 29.97 6% 30.42 8% 31.34 10% 32.27 12% 33.21 Number of Years for the Loan 4 10 20 $22.58 $10.12 $6.06 23.03 10.61 6.60 23.49 11.10 7.16 24.41 12.13 8.36 25.36 13.22 9.65 26.33 14.35 11.01 30 $4.77 5.37 6.00 7.34 8.78 10.29
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:In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an annual interest rate of 8%.
After 10 years, they refinanced the unpaid balance of $151,847 at an annual rate of 5%. Use the table to find the monthly
payments on the original loan; the monthly payments on the new loan; and the total amount saved on interest by
refinancing.
8 Click the icon to view a table of monthly payments on a $1,000 loan.
The monthly payments on the original loan are $
(Type an integer or a decimal.)
The monthly payments on the new loan are $
(Round to the nearest cent as needed.)
The total amount saved on interest by refinancing is $
(Round to the nearest cent as needed.)
8: Monthly Payment on a $1,000 loan
Annual Interest Rate
3
4%
$29.53
5%
29.97
6%
30.42
8%
31.34
10%
32.27
12%
33.21
Number of Years for the Loan
4
10
20
$22.58
$10.12
$6.06
23.03
10.61
6.60
23.49
11.10
7.16
24.41
12.13
8.36
25.36
13.22
9.65
26.33
14.35
11.01
30
$4.77
5.37
6.00
7.34
8.78
10.29
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