Question

When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.8% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. (a) Find the amount refinanced. (Round your answer to the nearest cent.) $ 167661.87 Correct: Your answer is correct. (b) Find their new monthly payment. (Round your answer to the nearest cent.) $ (c) How long will it take to pay off this new loan if they pay $1200 each month? (Round your answer up to the next whole number.)

Answer 1

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PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) Review View Add-Ins - 2x = = Dr General Wrap Text FMerce Merge & Center - Center E E s $ -% % 4.0 .00 . Insert Delete Format File Home Insert Page Layout Formulas Data % Cut Calibri 11AA = Ea Copy Paste B Format Painter I U B- E A Clipboard Font P869 foc J K L Conditional Format Formatting as Table Styles Cell Styles Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Find & Select Alignment Number Cells M N O P Q R 851 852 30 853 854 855 856 857 YEARS RATE PERIODS IN A YEAR MONTHLY RATE NO OF MONTHS MONTHLY PAYMENT 5.900% 12 0.491667% 360 870.60 858 BALANCE AFTER 78 MONTHLY PAYMENTS NO OF MONTHS LEFT LOAN BALANCE after 78 payments 282 132661.87 (=PV(N857,N863,-N859)] 859 860 861 862 863 864 865 866 867 868 869 870 871 N Rea ADDITIONAL FINANCE REQUIRED NEW LOAN AMOUNT = AMOUNT REFINANCED 35000 167661.87 (a) refinancing LOAN AMOUNT WITH REFINANCING COSTS YEARS LOAN OPTIONSpv, fv, annuity CAP STRU VALUE profit margin loan with points ferences 168286.87 [167661.87 +625] 25 LOCK BOX DILUTION DOLLAR COST AVG EXPONPER APR CPI H ear FVA < > pva 52 BO 53 120% - ... * H 10 ENG 24-11-2019

- 2x PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Σ AutoSum : A Calibri 11AA = = = Dr Wrap Text General E Copy Fill Paste B I U B- A E E E s FMerce Merge & Center - Center $ -% % 4.0 .00 . Conditional Format Format Painter Cell Insert Delete Format Sort & Find & Formatting as Table Styles 2 Clear Filter Select Clipboard Font Alignment Number Styles Cells Editing P887 - fix J K L M N. O P Q R 868 869 870 refinancing LOAN AMOUNT WITH REFINANCING COSTS 168286.87 (167661.87 +625) 871 YEARS 25 872 RATE 4.800% 873 PERIODS IN A YEAR 12 874 MONTHLY RATE 0.400000% 875 NO OF MONTHS 300 876 (b) NEW MONTHLY PAYMENT 960.70 [=PMT(N874,N875,-N867)] 877 878 PMT = 1200 879 NO OF MONTHS 206.20 (=NPER(N874,-N878,N870)] 880 (c) NO OF YEARS TO PAYOFF 18 881 882 883 884 885 886 887 888 N LOAN OPTIONSpv, fv, annuity CAP STRU VALUE profit margin loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPONPER APR CPI ear FVA pva 52 53 < Rea ferences BO 120% _ D O 9 * 410 ENG H > Ha e 9 SW 2 REAR 24-11-2019