(1 point) Suppose you buy a fridge for $1440. You agree to pay off the total amount with monthly payments over 3 years at 112 = 7%. If you wish to refinance you will have to pay a penalty equal to 4 months' interest on the outstanding balance. After 12 payments you see that interest rates at your bank are j12 = 6%. (a) Calculate the original monthly payment Answer: $ (b) Calculate the new monthly payment if you were to refinance under your banks interest rate. (Assume the original term does not change.) Answer: $ (c) Should you refinance? Answer: 2 NOTE: When calculating a payment or outstanding balance, round appropriately and carry that value through further calculations. (1 point) Suppose you buy a fridge for $1440. You agree to pay off the total amount with monthly payments over 3 years at 112 = 7%. If you wish to refinance you will have to pay a penalty equal to 4 months' interest on the outstanding balance. After 12 payments you see that interest rates at your bank are j12 = 6%. (a) Calculate the original monthly payment Answer: $ (b) Calculate the new monthly payment if you were to refinance under your banks interest rate. (Assume the original term does not change.) Answer: $ (c) Should you refinance? Answer: 2 NOTE: When calculating a payment or outstanding balance, round appropriately and carry that value through further calculations