Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 5.5% compounded monthly, with monthly payments. After 5 years of payments, Ann can refinance the balance into a 25 year Fully Amortizing FRM at an annual interest rate of 4.75% compounded monthly, with monthly payments. Refinancing will cost Ann 1 point and $1,500 in closing costs. E If Ann refinances into this loan and makes payments for 25 years, what will be her annualized IRR from refinancing?

Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 5.5% compounded monthly, with monthly payments. After 5 years of payments, Ann can refinance the balance into a 25 year Fully Amortizing FRM at an annual interest rate of 4.75% compounded monthly, with monthly payments. Refinancing will cost Ann 1 point and $1,500 in closing costs. E If Ann refinances into this loan and makes payments for 25 years, what will be her annualized IRR from refinancing?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 8E: Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments...

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