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In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $150,000 at an annual interest rate of 12%. After
In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $150,000 at an annual interest rate of 12%. After 10 years, they refinanced the unpaid balance of $115,149 at an annual rate of 8%. Use the table to find the monthly payments on the original loan; the monthly payments on the new loan; and the total amount saved on interest by refinancing.
The monthly payments on the original loan are
_____
(Type an integer or a decimal.)
Monthly Payment on a $1,000 loanStep by Step Solution
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