consider the following information, what is the NPV if the borrower refinances the loan? expected holding period: 5 years, currently laon balance: 100,000, current loan interest 9%, remaining term on currentl loan: 15, new loan interest 7.5%, new loan term 30 years, cost of refinancing 4,250

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.