You borrowed $6,000,000, a 30-year mortgage with 6% APR compounded monthly fixed rate (i.e., 0.5% per month) five years ago. The payments are made monthly. If you can refinance at 5% APR compounded monthly fixed rate for the next 25 years, compute new monthly payment.

Answer rating: 100% (QA)

Solution To calculate the new monthly payment we need to use the formula for the present value of an ... View the full answer