16. Ingrid is considering refinancing her mortgage. She currently has 120 payments of $2,322 left...
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16. Ingrid is considering refinancing her mortgage. She currently has 120 payments of $2,322 left on her fully amortizing loan. A lender is offering her a new fully amortizing mortgage on the remaining balance for 10 years (also 120 payments) that will have a payment of $2,115. Ingrid is not planning to ever move from her house. What is the highest refinancing cost that Ingrid is willing to pay and still choose to refinance if her discount rate is 10%? State your answer as a number rounded to two decimal points (e.g. if you find your answer is $34,542.111, write 34542.11)
17. A bank makes a 30-year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4%, with monthly payments. What is the market value of this loan after 7 years of payments if the annual market rate is 8%? State your answer as a number rounded to two decimal points (e.g. if your answer is $45.5580, write 45.56)
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