The Sandersons are planning to refinance their home. The outstanding principal on their original loan is...

The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $100,000 and was to amortized in 240 equal monthly installments at an interest rate of 11%/year compounded monthly. The new loan they expect to secure is to be amortized over the same period at an interest rate of 8%/year compounded monthly. How much less can they expect to pay over the life of the loan in interest payments by refinancing the loan at this time? (Round your answer to the nearest cent.)

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Expert Solution

It is given to calculate the difference between interest outgo in both the scenarios i.e. before refinancing and after refinancing.

Formula in the above table are worked out as under -

I hope above answer will help you in your task.

jeff jeffy answered 2 hours ago

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