Assignment Problem: Dante and Beatrice, your next-door neighbors know that you are taking an engineering economics course, so they approached you looking for a bit of advice in deciding on refinancing their home. They got a $250,000, 25 year mortgage 7 years ago @ 5.4 % compound continuously with monthly payments. They are about to make the last payment of the 7 year and have made no additional payment to the principal during the previous 7 years. its union Co- op is offering them a mortgage at 3.6 % for the remaining time of their existing mortgage ( 18 years)
What would you advise them to do ?
Explain the basis of your recommendation
Note: Please send me Answer in typed form strictly prohibited hand written solution and send me finally Answer separately