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Ann got a 30-year FRM with annual payments equal to $12,000. After 2 years of payments, Ann will refinance the balance into a 28-year FRM
Ann got a 30-year FRM with annual payments equal to $12,000. After 2 years of payments, Ann will refinance the balance into a 28-year FRM with annual payments equal to $10,000 Refinancing will cost Ann $5,500. Ann will prepay the new loan 3 years after refinancing. She will save $4,000 on her loan balance when she prepays. Find the Net Present Value for Ann's refinancing decision if her annual discount rate is 10%. 4500 -1277 ( 976 2479 1277 QUESTION 16 Find IRR for Ann's refinancing decision in Q15. Hint: this question is designed to be done with a financial calculator, not with a regular calculator
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