A home is purchased for $134550. The homeowner pays $26910 down and finances the balance for 20 years at 8% compounded monthly.

Just after 95 payments are made, the loan is refinanced at 6.5% compounded monthly. a. If the duration of the original loan remains the same, find the size of the new payments rounded up to the next cent. b. If money is worth 5.25% compounded monthly to the homeowner, what is the present value of the savings in interest at the time of refinancing?

c. If the homeowner continues with the original payments, find the number of full payments required to pay off the loan.