Twenty years ago you took out a $200,000 loan. The details of the loan called for uniform payments to occur every month for thirty years. (The first payment occurred one month after receiving the loan.) Interest rates have dropped significantly, and you have decided to refinance the loan. If the original loan interest rate was 6%, compounded monthly and the refinance rate is 3%, compounded monthly, the uniform payment you will make every month over the remaining ten years of the loan is closest to… (Assume the refinance occurs immediately after the final payment of the twentieth year.) .
a) $997.54
b) $555.56
c) $12,524.84
d) $ 313.98
e) $1,044.14
f) $ 1,932
g) $1,127.88