The Globerman family purchased a $580,000 home 5 years ago. The mortgage was based on...
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Accounting
The Globerman family purchased a $580,000 home 5 years ago. The mortgage was based on 25-year amortization and the term of the mortgage was for 5 years at 7.5% interest compounded monthly. At the start of year 6, the Globerman family have refinanced their mortgage at 7.3% compounded monthly, and have decided to increase their payments by 5% of the original payment amount. Determine how much faster the family will be able to pay off the mortgage by increasing payments and lowered interest rates.
options:
1)15.51 months faster
2)30.59 months faster
3)24.51 months faster
4)18.81 months faster
5)21.61 months faster
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