When Otto and Millie bought their home, they borrowed $200,000 for 30 years at 6% compounded monthly. After making 120 payments of $1199.10, they plan to refinance at 4.5% compounded monthly for 15 years, with refinancing costs of $750 added to the amount of the new loan.
(a) Find the amount of the new loan (amount refinanced).
(b) Find their new monthly payment.
(c) Find the amount saved by refinancing.