Question
Its been exactly five years since Mr. Smith bought his house with a 30-year mortgage which had an interest rate of 9.00% (APR, monthly compounding).
Its been exactly five years since Mr. Smith bought his house with a 30-year mortgage which had an interest rate of 9.00% (APR, monthly compounding). The outstanding balance of the current mortgage is $185,967.54. In the intervening five years, interest rates have fallen and so Mr. Smith has decided to refinance the remaining balance on his current mortgage with a new 34-year mortgage which has monthly payments and an interest rate of 6.3% (APR, monthly compounding). How much would the monthly payments on the new mortgage be? Round off your answers to two decimal points.
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