current balance on the loan is $$208,555\mathrm{.}87.$

The out$-$of$-$pocket costs must be paid in full at the time of refinancing.

Build a spreadsheet model to evaluate this offer. The Excel function:

$=PMT(rate,$ nper, $pv,fv,$ type$)$

calculates the payment for a loan based on constant payments and a constant interest rate. The arguments of this function are:

rate $=$ the interest rate for the loan

nper $=$ the total number $of$ payments

$pv=$ present value $(the$ amount borrowed$)$

$fv=$ future value $[the$ desired cash balance after the last payment $(usually0)]$

type $=$ payment type $(0=$ end $of$ period, $1=$ beginning $of$ the period$)$

annual interest rate must be expressed as a monthly rate. Also, for payment calculations, we assume that the payment is made at the end of the month.

$\frac{K}{(1+r{)}^{t-1}}$

where $r$ is the monthly inflation rate. Assume that $r=0\mathrm{.}002$ and that Dave and Jana make their payment at the end of each month.

Use your model to calculate the savings in current dollars associated with the refinanced loan versus staying with the original loan.

If required, round your answer to the nearest whole dollar amount. If your answer is negative use "minus sign".