The Sandersons are planning to refinance their home. Theoutstanding principal on their original loan is $120,000 and was toamortized in 240 equal monthly installments at an interest rate of10%/year compounded monthly. The new loan they expect to secure isto be amortized over the same period at an interest rate of 7%/yearcompounded monthly. How much less can they expect to pay over thelife of the loan in interest payments by refinancing the loan atthis time? (Round your answer to the nearest cent.)
$
