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zalisa [80]
3 years ago
8

Suppose you take out a 30​-year ​$300,000 mortgage with an APR of 6​%. You make payments for 4 years ​(48 monthly​ payments) and

then consider refinancing the original loan. The new loan would have a term of 20 ​years, have an APR of 5.6​%, 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 ​$2300. Use the information to complete parts ​(a) through​ (e) below.
a. What are the monthly payments on the original​ loan?
​$------- ​(Round to the nearest cent as​ needed.)

b. A short calculation shows that the unpaid balance on the original loan after 4 years is ​$283,843.60​, which would become the amount of the second loan. What would the monthly payments be on the second​ loan?
​$--------- ​(Round to the nearest cent as​ needed.)

c. What would be the total amount you would pay if you continued with the original 30​-year loan without​ refinancing?
​$------- ​(Round to the nearest cent as​ needed.)

d. What would be the total amount you would pay with the​ refinancing?
​$-------- ​(Round to the nearest cent as​ needed.)
Mathematics
1 answer:
Alex Ar [27]3 years ago
5 0

Answer:

Step-by-step explanation:

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