Make to pay off your mortgage if you refinance

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Reference no: EM132001278

1. Find the accumulated value of a 5-year annuity due to which you deposit $1200 each quarter. The annuity has an interest rate of 10% compounded quarterly for the first 2 years and 6% compounded quarterly for the last 3 years. Round answer to the nearest dollar.

2. You have a mortgage with a remaining balance $126,000 at 4.75%. A bank just sent you an offer to refinance you mortgage at 4.10%. Without considering any closing cost or other fees, if you plan to make the same monthly payments of $938.15 at the end of each month, how many less payments will you have to make to pay off your mortgage if you refinance?

Reference no: EM132001278

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