QUESTION 3 Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4.25% 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 3.75% compounded monthly, with monthly payments. Refinancing will cost Ann 2 points and $1,500 in closing costs. If Ann refinances into this loạn after 5 years, what will be her total cost of refinancing? O A. $21,500.00 O B. $19,661.54 OC. $20,000.00 OD.$18,161.54

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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QUESTION 3
Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4.25% 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 3.75% compounded monthly, with monthly payments.
Refinancing will cost Ann 2 points and $1,500 in closing costs.
If Ann refinances into this loạn after 5 years, what will be her total cost of refinancing?
O A. $21,500.00
O B. $19,661.54
OC. $20,000.00
OD. $18,161.54
Transcribed Image Text:QUESTION 3 Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4.25% 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 3.75% compounded monthly, with monthly payments. Refinancing will cost Ann 2 points and $1,500 in closing costs. If Ann refinances into this loạn after 5 years, what will be her total cost of refinancing? O A. $21,500.00 O B. $19,661.54 OC. $20,000.00 OD. $18,161.54
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