Six years ago you took out a loan of $180, 000 to finance the purchase of ahome $220, 000. The loan was 30 years of monthly payments at an interestrate of 8% with interest rates now at 5% you just refinance the full balanceof your home for 20 years. What will be your new monthly payment?

Six years ago you took out a loan of $180, 000 to finance the purchase of ahome $220, 000. The loan was 30 years of monthly payments at an interestrate of 8% with interest rates now at 5% you just refinance the full balanceof your home for 20 years. What will be your new monthly payment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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Question

Six years ago you took out a loan of $180, 000 to finance the purchase of a
home $220, 000. The loan was 30 years of monthly payments at an interest
rate of 8% with interest rates now at 5% you just refinance the full balance
of your home for 20 years. What will be your new monthly payment?

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