Question: Please show all work and do not use excel, thanks! 14. You use a loan of amount $30000 to buy a car. The term of

Please show all work and do not use excel, thanks!

Please show all work and do not use excel, thanks! 14. You

14. You use a loan of amount $30000 to buy a car. The term of the loan is 5 years with level monthly payments and loan rate of 5.4% compounded monthly. After 2 years, another bank offers you a refinancing opportunity: you can refinance your loan balance under a new 6-year term loan with level monthly payments and a lower loan rate of 0.036% compounded monthly. There are no additional penalties or charges of refinancing. Should you take the offer, calculate: (a) What is the new monthly payment amount? (b) How much more/less do you pay on total interest under refinancing compared to the original plan? 14. You use a loan of amount $30000 to buy a car. The term of the loan is 5 years with level monthly payments and loan rate of 5.4% compounded monthly. After 2 years, another bank offers you a refinancing opportunity: you can refinance your loan balance under a new 6-year term loan with level monthly payments and a lower loan rate of 0.036% compounded monthly. There are no additional penalties or charges of refinancing. Should you take the offer, calculate: (a) What is the new monthly payment amount? (b) How much more/less do you pay on total interest under refinancing compared to the original plan

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