Victoria and David have a 30-year, $75,000 mortgage with an 8% nominal annual interest rate. All payments are due at the end of the month. Amortization 178 What percentage of their monthly payments the first towards interest payments? Answer: d year will go a. b. 7.768 9.49 % c. 82.17% d. 90.51% e. 91.31% Amortization 179 Answer: a If Victoria and David were able to refinance their mortgage and replace it with a 7% nominal annual interest rate, how much (in dollars) would their monthly payment decline? a. $ 51.35 b. $59.78 c. $ 72.61 d. $ 88.37 e. $104.49 (The following information applies to the next two problems.)