With the following information, compute the net benefit of refinancing: Current loan balance: $200,000 Remaining term: 15 years Interest rate: 6.5 % Old loan monthly payment: $1742.22 Expected number of future payments you will make: 72 Interest rate available on a new loan: 4.5 % Cost of refinancing: 5% of the outstanding balance. what is the resulting net benefit?
With the following information, compute the net benefit of refinancing: Current loan balance: $200,000 Remaining term: 15 years Interest rate: 6.5 % Old loan monthly payment: $1742.22 Expected number of future payments you will make: 72 Interest rate available on a new loan: 4.5 % Cost of refinancing: 5% of the outstanding balance. what is the resulting net benefit?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 12P
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