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What are the monthly payments on the original loans ?(Round nearest to cent)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 10P

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Question

Suppose you take out a 50-year $250,000 mortgage with an APR of 6%. You make payments for 3 years (36 monthly payments) and then consider refinancing the original loan. The new loan would have a term of 20 years, have an APR of 5.8%, and be in the amount of the unpaid balance on the original loan. (The amount you borrow on the new loan would be used to pay off the balance on the original loan.) The administrative cost of taking out the second loan would be $1900. What are the monthly payments on the original loans ?(Round nearest to cent)

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