The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $110,000 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 4.1%/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.) $4

The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $110,000 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 4.1%/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.) $4

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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