The Fairfold family decided to buy a super ski andwater

Chapter 4, Problem 4.44

(choose chapter or problem)

The Fairfold family decided to buy a super ski andwater sports boat. They took out an $80,000,5-year, 6% per year, compounded semiannuallyloan with monthly payments from First Bank andTrust (FB&T). After making only two payments, abanker friend offered to make them a better deal: a5-year, 4.2% per year, compounded semiannuallyloan with no transfer fee to his bank and a completerepayment no-fee-required of the remainingprincipal to FB&T. The principal on the new loanwill be the remaining principal from the currentloan. Answer the following questions for theFairfolds as they deliberate this new offer.(a) What is the current monthly payment on the$80,000 loan?(b) What is the current principal due on the currentloan?(c) How much interest have they already paid inthe first two payments?(d) What is the amount of the new monthly paymentstarting with month 3, if the new loanoffer is accepted?(Note: 4.65 requests a spreadsheet solutionfor this problem, if assigned by your instructor.)