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Problem 1: Jeremy purchases a piece of construction equipment worth $20000 by paying 13% down and the balance with monthly payments over 15 years at /12 = 14%. If he wants to refinance the loan, there is a penalty equal to one monthly payment. If after 3 years he realizes he can borrow money from the bank at /12 = 7%. How much money does he save by refinancing?
Option 1: $9801.68
Option 2: $9148.32
Option 3: $8843.90
Option 4: $9454.53
Option 5: $8033.62
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