Question
A person purchased a $132,754 home 10 years ago by paying 10% down and signing a 30-year mortgage at 9.9% compounded monthly. Interest rates have
A person purchased a $132,754 home 10 years ago by paying 10% down and signing a 30-year mortgage at 9.9% compounded monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 20-year mortgage at 6.3% compounded monthly. How much interest will refinancing save?
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
