The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $120,000 and is now to be amortized in 240 equal monthly installments at an interest rate of 5%/year compounded monthly. The new loan they expect to secure is to be amortized over the same period at an interest rate of 4.2%/year compounded monthly. How much less can they expect to pay over the life of the loan in interest payments by refinancing the loan at this time? (Round your answer to the nearest cent.) $
The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $120,000 and is now to be amortized in 240 equal monthly installments at an interest rate of 5%/year compounded monthly. The new loan they expect to secure is to be amortized over the same period at an interest rate of 4.2%/year compounded monthly. How much less can they expect to pay over the life of the loan in interest payments by refinancing the loan at this time? (Round your answer to the nearest cent.) $
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $120,000 and is now to be amortized in 240 equal monthly installments at an interest rate of 5%/year compounded monthly. The new loan they expect to secure is to be amortized over the same period at an interest rate of 4.2%/year compounded monthly. How much less can they expect to pay over the life of the loan in interest payments by refinancing the loan at this time? (Round your answer to the nearest cent.)
$
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