Pablo and Max received a 30-year mortgage for $201,000 at the APR of 11.4%, compounded monthly. After they had made 9 years of the payments (108 payments) they decided to refinance the remaining loan balance for 20 years at an APR of 5.3%, compounded monthly. What will be the balance on their loan 3 years after the refinance?
Pablo and Max received a 30-year mortgage for $201,000 at the APR of 11.4%, compounded monthly. After they had made 9 years of the payments (108 payments) they decided to refinance the remaining loan balance for 20 years at an APR of 5.3%, compounded monthly. What will be the balance on their loan 3 years after the refinance?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 5E
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![Pablo and Max received a 30-year mortgage for $201,000 at the APR of 11.4%, compounded monthly. After
they had made 9 years of the payments (108 payments) they decided to refinance the remaining loan
balance for 20 years at an APR of 5.3%, compounded monthly. What will be the balance on their loan 3
years after the refinance?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F271b00bc-75b2-47db-8d97-f3cf434d15a8%2Fe9eee190-9d31-4e78-a064-41b08c8bc89f%2Fziavg0b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pablo and Max received a 30-year mortgage for $201,000 at the APR of 11.4%, compounded monthly. After
they had made 9 years of the payments (108 payments) they decided to refinance the remaining loan
balance for 20 years at an APR of 5.3%, compounded monthly. What will be the balance on their loan 3
years after the refinance?
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