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 6%. After 10 years, they refinanced the unpaid balance of $142,125 at an annual rate of 4%. 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. 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.) Number of Years for the Loan Annual Interest Rate 3 4 10 20 30 4% $29.53 $22.58 $10.12 $6.06 $4.77 5% 29.97 23.03 10.61 6.60 5.37 6% 3042 23.49 11.10 7.16 6.00 8% 31.34 24.41 12.13 8.36 7.34 10% 32.27 25.36 13.22 9.65 8.78 12% 33.21 26.33 14.35 11.01 10.29 Print Done
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 6%. After 10 years, they refinanced the unpaid balance of $142,125 at an annual rate of 4%. 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. 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.) Number of Years for the Loan Annual Interest Rate 3 4 10 20 30 4% $29.53 $22.58 $10.12 $6.06 $4.77 5% 29.97 23.03 10.61 6.60 5.37 6% 3042 23.49 11.10 7.16 6.00 8% 31.34 24.41 12.13 8.36 7.34 10% 32.27 25.36 13.22 9.65 8.78 12% 33.21 26.33 14.35 11.01 10.29 Print Done
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
Related questions
Question
![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 6%. After 10 years, they refinanced the unpaid balance of $142,125 at an
annual rate of 4%. 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.
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe95a5171-6b65-49ce-928c-6b3d75b3e447%2F64569ec8-d3f9-4bb5-ad34-7d589665b683%2F47bcvp_processed.png&w=3840&q=75)
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 6%. After 10 years, they refinanced the unpaid balance of $142,125 at an
annual rate of 4%. 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.
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.)
![Number of Years for the Loan
Annual Interest Rate
3
4
10
20
30
4%
$29.53
$22.58
$10.12
$6.06
$4.77
5%
29.97
23.03
10.61
6.60
5.37
6%
3042
23.49
11.10
7.16
6.00
8%
31.34
24.41
12.13
8.36
7.34
10%
32.27
25.36
13.22
9.65
8.78
12%
33.21
26.33
14.35
11.01
10.29
Print
Done](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe95a5171-6b65-49ce-928c-6b3d75b3e447%2F64569ec8-d3f9-4bb5-ad34-7d589665b683%2Ftijc2aj_processed.png&w=3840&q=75)
Transcribed Image Text:Number of Years for the Loan
Annual Interest Rate
3
4
10
20
30
4%
$29.53
$22.58
$10.12
$6.06
$4.77
5%
29.97
23.03
10.61
6.60
5.37
6%
3042
23.49
11.10
7.16
6.00
8%
31.34
24.41
12.13
8.36
7.34
10%
32.27
25.36
13.22
9.65
8.78
12%
33.21
26.33
14.35
11.01
10.29
Print
Done
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