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You bought a house ten years ago, financing $100,000 with a 30-year mortgage at 8 percent APR with monthly payments. You are considering refinancing with

You bought a house ten years ago, financing $100,000 with a 30-year mortgage at 8 percent APR with monthly payments. You are considering refinancing with a 20-year mortgage with monthly payments at 6 percent APR. Closing costs are $2,500. What is the present value of this refinancing? (Assume your cost of capital is equivalent to the new mortgage rate)

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