Dave currently makes monthly payments towards a 25-year mortgage of $290000 with an interest rate of 14.4% compounded monthly. After making the 67th payment, Dave refinanced his mortgage at an interest rate of 8.4% compounded monthly and renegotiated his term. This resulted in Dave's monthly payments being reduced by $700. How large will Dave's final drop payment be? Answer: $ NOTE: When calculating a payment or outstanding balance, round appropriately and carry that value through further calculations.

Dave currently makes monthly payments towards a 25-year mortgage of $290000 with an interest rate of 14.4% compounded monthly. After making the 67th payment, Dave refinanced his mortgage at an interest rate of 8.4% compounded monthly and renegotiated his term. This resulted in Dave's monthly payments being reduced by $700. How large will Dave's final drop payment be? Answer: $ NOTE: When calculating a payment or outstanding balance, round appropriately and carry that value through further calculations.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...

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Dave currently makes monthly payments towards a 25-year mortgage of $290000 with an interest rate of 14.4% compounded monthly. After making the 67th payment, Dave refinanced his mortgage at an interest rate of 8.4% compounded monthly and renegotiated his term. This resulted in Dave's monthly payments being reduced by $700. How large will Dave's final drop payment be? Answer: $ NOTE: When calculating a payment or outstanding balance, round appropriately and carry that value through further calculations.
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