Athena took out a home loan 4 years ago with a 30-year term, monthly payments of $1,600, and an interest rate of 5%/year compounded monthly on the unpaid balance. She is looking to refinance with a 3.25% per year interest rate and a 26-year loan term. a) Find the outstanding principal after 4 years of regular payments. b) What would the new monthly payment be? Use units and context for both answers Roundl answer
Athena took out a home loan 4 years ago with a 30-year term, monthly payments of $1,600, and an interest rate of 5%/year compounded monthly on the unpaid balance. She is looking to refinance with a 3.25% per year interest rate and a 26-year loan term. a) Find the outstanding principal after 4 years of regular payments. b) What would the new monthly payment be? Use units and context for both answers Roundl answer
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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