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4. The Vaughan's have a mortgage of $ 725000 amortized over 25 years at 4.25% compounded monthly. After the original 4 year term, the mortgage is renewed at 4.0% compounded monthly. Calculate the new monthly payment.

 

5. A bank charges 7.75% compounded monthly on a mortgage. The Markins have an excellent credit rating. They negotiated a rate of 7% compounded monthly on a mortgage on $ 230000 amortized over 25 years. By how much did the Markins reduce their monthly payment by negotiating the lower rate of interest?