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Interest rates have fallen. You have the opportunity to refinance your mortgage at 5% compounded monthly. Refinancing will cost $3,000, but will save you $89.07
Interest rates have fallen. You have the opportunity to refinance your mortgage at 5% compounded monthly. Refinancing will cost $3,000, but will save you $89.07 a month in interest payments. You plan to live in your home for another 3 years. Is refinancing worthwhile? What is the NPV of this refinancing to you? (6 points)
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