iRoar Portal X e Sign In or Sig × Inbox (MO-1 M Your Chegg.cu D csePub-Elec × e

Question

iRoar Portal X e Sign In or Sig × Inbox (MO-1 M Your Chegg.cu D csePub-Elec × e Finance questi F lls Roy oe Di x y Donald J. Trur x G population of https://www.csepub.com/exercise/users answers/8297969/edit CSePub Home Book Store Independent Authors About Your Cart tems:Total: $99.99 View Cart A couple took out a $396,000.00 mortgage ten years ago. The arc nal terms called for 30 years of monthly payments at a 6.12% APR. The couple has made all payments over the last 10 years. Currenty, the couple is considering re-tinancing thelr mcrtgage The coup e has been offered a chance to re-finance their mortgage balance. The new mortgage will be for 30 years at the lower rate of 3.12% APR with monthly compounding. The mortgage will call for monthly payments. What is the new monthly payment if the couple refinances? Answer Format: Currency: Round to: 2 decimal places Enter Answer Here.. Submit Answer Prev Problem Al ProblemsNext Problem Contact Us Privacy Policy TeTIs Copyright 2018 Conley Smith Publishing. All Right reserved. 946 PM O Type here to search 9/26/2018 2

Explanation / Answer

Using financial calculator:
PV=396000
N=30*12
I/Y=6.12%/12
FV=0
CPT PMT=$2,404.86

Loan oustantding now:
PV=396000
N=10*12
I/Y=6.12%/12
PMT=-$2,404.86
CPT FV=$332,451.40

Monthly payment with refinancing:
PV=$332,451.40
N=30*12
I/Y=3.12%/12
FV=0
CPT PMT=$1,423.24

Hence, monthly payment if the couple refinances is $1,423.24

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.