Use the following information to answer Questions 1-3: Layla has owned her home for 12 years and expects to live in it for 5 more years. She originally borrowed $200,000 at 5% for 30 years to buy the home. She still owes $130,000 on the loan interest rates have fallen to 4%, and Layla is reconsidering refinancing the loan for 15 years. She would have to pay 3 points on the new loan with no prepayment on the current loan. Question 3 20 pts Run the numbers worksheet, "When You should Refinance Your mortgage" on page 278. Show the numbers at each line. Use 3% for the investment return. Advise Layla on whether she should refinance. 4,175 5. Future value of an account balance after 4 years if the monthly savings were invested at 3% after taxes (using the calculator on the Garman/Forgue companion website) 6. Prepayment penalty on current loan (0%) 7. Points and fees for new loan (2%) 8. Future value of an account balance after 4 years if the prepayment penalty and closing costs ($4,263) had been invested instead at 3% after taxes (using the calculator on the Garman/Forgue companion website) 9. Net saving after 48 months (line 5 - line 8) 2,842 3,198 $977 Use the following information to answer Questions 1-3: Layla has owned her home for 12 years and expects to live in it for 5 more years. She originally borrowed $200,000 at 5% for 30 years to buy the home. She still owes $130,000 on the loan interest rates have fallen to 4%, and Layla is reconsidering refinancing the loan for 15 years. She would have to pay 3 points on the new loan with no prepayment on the current loan. Question 3 20 pts Run the numbers worksheet, "When You should Refinance Your mortgage" on page 278. Show the numbers at each line. Use 3% for the investment return. Advise Layla on whether she should refinance. 4,175 5. Future value of an account balance after 4 years if the monthly savings were invested at 3% after taxes (using the calculator on the Garman/Forgue companion website) 6. Prepayment penalty on current loan (0%) 7. Points and fees for new loan (2%) 8. Future value of an account balance after 4 years if the prepayment penalty and closing costs ($4,263) had been invested instead at 3% after taxes (using the calculator on the Garman/Forgue companion website) 9. Net saving after 48 months (line 5 - line 8) 2,842 3,198 $977