Suppose that 4 years ago you borrowed $200,000 using a 30-year fixed-rate mortgage with an interest rate of 8% per year with monthly payments and compounding. What would the net present value of refinancing be if you can get an interest rate of 6% per year with monthly payments and compounding on a new 30-year mortgage and you assume that refinancing costs will be 4% of the new loan amount and you will pay off the new loan after 5 years of payments?

a. $7,547

b. $8,720

c. $7,882

d. $8,385