j2= semi annually

(e) build an amortization table for the first 2 month

(f) would the couple refinance their loan if the penalty was 3 times one months interest on the outstanding balance.

7.88 A couple buys a home and signs a mortgage contract for $120 000 to be paid with monthly payments over a 25-year period at j2 = 10 %. After 5 years, they renegotiate the interest rate and refinance the loan at ja = 7%. Find (a) the monthly payment for the initial 5-year period; (b) the new monthly payment after 5 years; (c) the accumulated value of the savings for the second 5-year period at j12 = 3% valued at the end of the second 5-year period; (c) the outstanding balance at the end of 10 years. Ans. (a) $1114; (6) $113 271.22; (c) $15 682.65; (d) $97 554.61 A cinnea matano Antant for 100 on the main with monthlu 7.88 A couple buys a home and signs a mortgage contract for $120 000 to be paid with monthly payments over a 25-year period at j2 = 10 %. After 5 years, they renegotiate the interest rate and refinance the loan at ja = 7%. Find (a) the monthly payment for the initial 5-year period; (b) the new monthly payment after 5 years; (c) the accumulated value of the savings for the second 5-year period at j12 = 3% valued at the end of the second 5-year period; (c) the outstanding balance at the end of 10 years. Ans. (a) $1114; (6) $113 271.22; (c) $15 682.65; (d) $97 554.61 A cinnea matano Antant for 100 on the main with monthlu