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11. 3 points HartMathAp11 6.5.032 My Notes When Gustavo and Serra na bought thei

ID: 2788023 • Letter: 1

Question

11. 3 points HartMathAp11 6.5.032 My Notes When Gustavo and Serra na bought their home, they had 5.7% loan with monthly payments ot $870 60 or 30 years. After making 78 month , par er s they plan to finance oan amount additional $35,000 u iemodel the" kitchen. They can refinance al 4.4% compounded mon h or 25 years with ein dicing costs o 625 included wi , hed Tourt refinerice at ni des an (a) Find the amount refinanced. (Round your answer to the nearest cent.) b) Find their new monthly payment. (Round your answer to the nearest cet.) (c) How long will it take to pay off this new loan if they pay S1200 cach month? (Round your answer up to the next whole number.) payments Need Help? Read It

Explanation / Answer

Initial Loan=PV(5.7%/12,30*12,-870.6)=150,000

After 78 payments, outstanding loan=135115.5

New loan to be refinanced=

135115.5+35000=170115.5

Total refinanced loan=170115.5+625=170740.5

Monthly payment=PMT(4.4%/12,25*12,K11)=939.37

If they pay 1200 each month, months required=NPER(4.4%/12,-1200,170740.5,0)=201.51 =202 payments

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