Problema Solution
You are given the amount of an amortize loan P, the annual interest rate r, the number of payments of the loan n, and the monthly payment R.After the specified number of months, the borrower decides to refinance at a new interest rate for the remaining length of the loan.
a.what is the new monthly payment?
b. how much does the borrower save on interest?
P=$5,000;r=15%;n=36;R=$173.33; Refinance after 24 months at an interest rate of 5%.
Answer provided by our tutors
P = 5000$
n = 36
R = 173.33$
Interest yr = 5%
a) R = 173.33 $
SI = prt/100 = 5000 * 5*3/100 = 750 $ is the answer
750 $ is the money he can save.