A person purchased a $134,359 home 10 years ago by paying 20% down and signing a 30-year mortgage at 11.7% compound monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 30-year mortgage at 6.6% compounded monthly. How much interest will refinancing save?

A person purchased a $134,359 home 10 years ago by paying 20% down and signing a 30-year mortgage at 11.7% compound monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 30-year mortgage at 6.6% compounded monthly. How much interest will refinancing save?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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