Question: The Moores recently found out that they can reduce their mortgage interest rate from 12 percent to 8 percent. The value of homes in their

The Moores recently found out that they can reduce their mortgage interest rate from 12 percent to 8 percent. The value of homes in their neighborhood has been increasing at the rate of 7.5 percent annually. If the Moores were to refinance their house with $2,000 in closing costs in addition to the mortgage balance ($120,056) over a period of time to coincide with their chosen retirement age in 22 years, what would the monthly payment be for principal and interest (closing costs are going to be added to the mortgage)?

a. $853.43.

b. $895.60.

c. $945.34.

d. $967.86.

e. $983.99.

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