QUESTION 14 From: Principles of Finance with Excel 3rd ed, Benninga and Mofkadi, 2018, 2011, 2006 Five years ago, you took out an interest only loan. The loan carries a 1% monthly interest rate, and the loan principal is $150,000. The loan has 2 more years (24 monthly payments to be paid at the end of every month). Loan Principal Amount: Time to Maturity (months) Interest Rate (monthly) 150,000.00 24 1.00% Part A: What is the monthly loan payment? Payment: #N/A Part B: A financial advisor approaches you and offers to refinance the loan for a consultancy fee of $8,000. The new loan has the same characteristics as the current loan but carries a 0.75% monthly rate Should you refinance the loan? Part C: Build the Amortization Table of the original loan) REFINANCE TERMS Loan Principal Amount: Time to Maturity (months) Interest Rate (monthly) Fees 150,000.00 24 0.75% 8,000.00 Contractual Value of Orig. Loan Market Value of Orig. Loan Benefit of Refinancing Less Fees: Real Benefit of Refi: Refinance? 8,000.00