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You have a mortgage balance of $110,000 that will require you to make 120 more payments of $1.027, starting next month. Alternatively, you can take

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You have a mortgage balance of $110,000 that will require you to make 120 more payments of $1.027, starting next month. Alternatively, you can take out a loan today for $110.000 with an interest rate of 2.97% APR compounded monthly and pay off the original mortgage. The new loan will require you to make 120more payments, starting next month If your investments eam 6.28% APR, compounded monthly, how much will you save in PV terms by taking out the new loan to pay off the original mortgage

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