Rodyon Raskolnikov borrows $200,000 to purchase a house. The bank lends him the money at an interest rate of 8% p.a. compounded semi-annually (2 times per year). The loan is to be paid off over 10 years by making equal monthly payments starting in exactly one month. Two years after borrowing the money, interest rates have fallen to 6% p.a. compounded semi-annually. Rodyon would like to renegotiate his loan, but the bank points out that the terms of the original loan stipulate that the interest rate is to remain fixed for a period of 5 years. Thus Rodyon is locked in to the higher rate for another 3 years. He can, if he wishes, break the current agreement, but then has to pay a penalty of 3 months of payments. Should he continue with the current loan, or should he break the agreement, pay the penalty, and renegotiate at the lower rate?