Find the amount of the new monthly payment

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Reference no: EM131860024

A home loan of $200,000 has is issued at a nominal annual rate of 8% compounded monthly. The loan is to be repaid with level monthly payments at the end of each month and the loan has a term of 30 years. Immediately after the 60th payment, the loan is refinanced at nominal annual rate of 6% compounded monthly. Keeping the original term of the loan (the new loan will be paid off by the same date as the original loan), find the amount of the new monthly payment.

Reference no: EM131860024

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