$1$

$.$

$$Five years ago, you bought a $

$70$

$,$

$000$

$$house by putting

$10$

$\%$

$$down and financing the rest at a

rate of

$8\mathrm{.}5$

$\%$

$$for

$30$

$$years$.$ What is your monthly payment? How much interest did you pay on the

loan over the last year? Today you decide to refinance the house for

$15$

$$years at a rate of

$6\mathrm{.}25$

$\%$

$.$

The bank charges you transaction costs of $

$1500$

$$which you include in the balance of the new

loan. What are your new monthly payments?

$($

Use excel for this question

$)$