Harold took out a 4-year amortized loan for $22,000 at 10% to pay his tuition at a technical institute. After 1 year, he refinanced the unpaid balance of $17,291 at a 6% interest rate.

(All interest rates are annual interest rates.)

1) Find the monthly payment on the original loan;
2) Find the monthly payment on the new loan;
3) Find the total amount saved on interest by refinancing.

Possible answers below

A. $557.92; $557.98; $1149.48

B. $557.92; $525.99; $1149.48

C. $557.92; $525.99; $6127.83

D. $557.92; $557.98; $6127.83

Would the answer be C?

1 answer

Yes, the answer is C.