g Mr. Aman wants to refinance his mortgage loan as the interest rates in the market are reduced. The outstanding balance will be borrowed by Aman at the rate of 5% APR. The mortgage loan term was 15 years at 6% APR. The monthly payment on current mortgage loan is $4,000. Aman just made 15th payment. How much amount Aman needs to borrow to refinance his mortgage? (a) $476,591.71 (b) $448,690.58 (c) $474,014.06 (d) $505,820.97
g Mr. Aman wants to refinance his mortgage loan as the interest rates in the market are reduced. The outstanding balance will be borrowed by Aman at the rate of 5% APR. The mortgage loan term was 15 years at 6% APR. The monthly payment on current mortgage loan is $4,000. Aman just made 15th payment. How much amount Aman needs to borrow to refinance his mortgage? (a) $476,591.71 (b) $448,690.58 (c) $474,014.06 (d) $505,820.97
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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Mr. Aman wants to refinance his mortgage loan as the interest rates in the market are
reduced. The outstanding balance will be borrowed by Aman at the rate of 5% APR. The
mortgage loan term was 15 years at 6% APR. The monthly payment on current mortgage
loan is $4,000. Aman just made 15th payment. How much amount Aman needs to borrow
to refinance his mortgage?
(a) $476,591.71
(b) $448,690.58
(c) $474,014.06
(d) $505,820.97
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