Question
Two years ago, you got a 10-year, $100,000 interest-only loan with the rate of 7.50%. At the end of the 2nd year the market interest
Two years ago, you got a 10-year, $100,000 interest-only loan with the rate of 7.50%. At the end of the 2nd year the market interest rate drops to 5.70%. You are considering to refinance. Ignore costs, what is the present value of the refinancing saving? A. 10,543.15
B. 14,400.00
C. 11,311.56
D. 12,404.50
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
7th Edition
0030333288, 9780030333286
