A borrower takes out a 26-year loan for 47,000, with level end-of-month payments. The annual nominal interest

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A borrower takes out a 26-year loan for 47,000, with level end-of-month payments.

The annual nominal interest rate of the loan is 5.4%, convertible monthly.

Immediately after the 45^th payment is made, the remaining loan balance is reamortized. The maturity date of the loan remains unchanged, but the annual nominal interest rate of the loan is changed to 4.5%, convertible monthly.

Calculate the new end-of-month payment.

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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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Posted Date: Jan 10, 2023 03:59 AM

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A borrower takes out a 26-year loan for 47,000, with level end-of-month payments. The annual nominal interest

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Step 14 First loan outstanding immediately after making the 45th payment at current interest rate sh... View the full answer

Engineering Economic Analysis

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