The Globerman family purchased a $580,000 home 5 years ago. The mortgage was based on 25-year amortization and the term of the mortgage was for 5 years at 7.5% interest compounded monthly. At the start of year 6, the Globerman family have refinanced their mortgage at 7.3% compounded monthly, and have decided to increase their payments by 5% of the original payment amount. Determine how much faster the family will be able to pay off the mortgage by increasing payments and lowered interest rates.

options:

1)15.51 months faster

2)30.59 months faster

3)24.51 months faster

4)18.81 months faster

5)21.61 months faster