Michael has a 25 year mortgage for $625000 with monthly payments of $4721.

a) What is the nominal annual rate compounded monthly? After 3 years the interest rate has gone down to 4.75% (compounded monthly).

b) What is the outstanding balance on the mortgage?

c) If Michael refinances his existing mortgage at the new rate but with the same number of remaining monthly payments, what will his new payments be?

d) If instead he takes out a new 25 mortgage (for the outstanding balance from part b)), what will his monthly payments be.