Question

28. You borrowed $100,000 to purchase your $125,000 condo a while back. You borrowed the money at 7%, with a 30-year amortization period. Ten years went by, and you decided to refinance the remaining balance of your mortgage at 5% (again, with monthly payments) over the remaining 20-year amortization period. What was your new mortgage payment after you refinanced? (to the nearest dollar or so) A) $461 B) $832 C) $665 D) $708 E) $566

          28.
You borrowed $100,000 to purchase your $125,000 condo a while back. You borrowed the
money at 7%, with a 30-year amortization period. Ten years went by, and you decided to
refinance the remaining balance of your mortgage at 5% (again, with monthly payments) over the
remaining 20-year amortization period. What was your new mortgage payment after you
refinanced? (to the nearest dollar or so)
A) $461
B) $832
C) $665
D) $708
E) $566

28.
You borrowed 100,000 to purchase your125,000 condo a while back. You borrowed the
money at 7%, with a 30-year amortization period. Ten years went by, and you decided to
refinance the remaining balance of your mortgage at 5% (again, with monthly payments) over the
remaining 20-year amortization period. What was your new mortgage payment after you
refinanced? (to the nearest dollar or so)
A) 461
B)832
C) 665
D)708
E) 566

Added by Michael V.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

08/05/2023

Step 1

To calculate the remaining balance, we need to use the formula for the remaining balance on a mortgage: Remaining Balance = Principal * (1 + Monthly Interest Rate)^(Number of Payments) - (Monthly Payment * ((1 + Monthly Interest Rate)^(Number of Payments) - 1)) Show more…

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this is a practice exam i just wsnt to see the work for the correct answer 28. You borrowed $100,000 to purchase your S125.000 condo a while back.You borrowed the money at 7%,with a 30-year amortization period.Ten years went byand you decided to refinance the remaining balance of your mortgage at 5%(again,with monthly payments)over the remaining 20-year amortization period. What was your new mortgage payment after you refinanced?(to the nearest dollar or so) AS461 BS832 CS665 DS708 ES566