When Gustavo and Serrana bought their home, they had a 5.7% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.8% compounded monthly for 25 years, with refinancing costs of $625 included with the amount refinanced. Find the amount refinanced . Find their new monthly payment . How long will it take to pay off this new loan if they pay $1200 each month ?

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A: Perpetuity amount= $390,000 Cash Flow Amount= $14,600 per year Rate of return=?

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A: The worth of the money varies with time. So, the time value of money computes the worth of the money…

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A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

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A: The question is based on the concept of Present value

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A: The monthly amortization is the payment that has to be paid or received at the end of every month.

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A: Present value of annuity is current value of the future annuity flow.

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Q: How much money should she save at the beginning of each 3 months

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A: Introduction Mortgage Loan: A mortgage is a loan that a borrower takes out to buy or retain a house…

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A: Excel Spreadsheet: Excel Workings:

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A: Excel Spreadsheet: Excel Workings:

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Q: Emma bought a $360,000.00 house, paying 10% down, and financing the rest at 2% interest for 20…

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A: The amount of the annual annuity payment can be calculated using the below excel formula:

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