What will be the new months needed to amortize the


Suppose 2 years ago a borrower borrowed a FRM loan at 12% IRR with monthly payments for an initial balance of $100000 with 20 years term. Further suppose that the current interest rate available in the market is 6%. the borrower could refinance the loan at 6% interest but keep the same monthly payments and reduce the number of months needed to amortize the debt. What will be the new months needed to amortize the debt?

Please show work on by using a financial calculator and formula, not by Excel sheet.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What will be the new months needed to amortize the
Reference No:- TGS02792261

Expected delivery within 24 Hours