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The Smiths are refinancing their home mortgage to a 15- year loan at 5.25% annual interest compounded monthly. Their outstanding balance on the loan

The Smiths are refinancing their home mortgage to a 15- year loan at 5.25% annual interest compounded monthly. Their outstanding balance on the loan is $95,000. (a) Under their current loan, the Smiths' monthly mort- hon gage payment is $1104. How much will the Smiths be saving in their monthly mortgage payments by refi- nancing? (Round your answer to the nearest dollar.) (b) How much interest will the Smiths pay over the life of the new loan?

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