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An individual is borrowing $165,000 for a 25 year loan at 4.0% per year compounded monthly. Compute the monthly payment. Immediately after his 108th monthly

An individual is borrowing $165,000 for a 25 year loan at 4.0% per year compounded monthly. Compute the monthly payment. Immediately after his 108th monthly payment he decides to refinance at a lower rate of 3% per year compounded monthly for 100 monthly payments. What would be his new monthly payment and how much interest will he save? Draw the cash flow diagrams.

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