An engineer bought a house four years ago for $70,000. She paid cash equal to 10% of the purchase price as the down payment. The rest she financed with two loans. One is a company subsidized loan of 12% for $20,000, with equal monthly payments for 20 years. The other loan (for the remainder of the money needed) was provided by a local bank, with an interest rate of 15%, also payable over 20 years, with uniform monthly payments.

What are her total monthly payments?

The engineer has today (at the end of the fifth year) an option of refinancing both loans with a new loan which has a 9% interest rate, payable in 16 years with uniform monthly payments. The fees for refinancing will amount to $1450, and this amount will also have to be borrowed under the same 9% loan.

How much will she need to refinance for 15 years?

Group of answer choices

$61,339

$60,255

$59,011

$57,583