Five years ago you took out a 30-year fixed $300,000 mortgage with monthly payments and an...

Five years ago you took out a 30-year fixed $300,000 mortgage with monthly payments and an APR of 8%, compounded monthly. You have made the normal payments in full, and, this morning, after making a normally scheduled payment, you are paying off the

balance by taking out a new 30-year fixed mortgage at a lower APR of 6% (with monthly compounding). How much will each monthly payment be?

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Expert Solution

Monthly payments=PMT(6%/12,12*30,-FV(8%/12,12*5,PMT(8%/12,12*30,-300000),-300000))
=1709.98

jeff jeffy answered 1 year ago

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