kaylamorris05
12.02.2020 •
Business
What is the new payment on a 25-year, monthly payment, adjustable-rate mortgage after five years if the interest rate changes from 9.75% to 8.75% The original amount of the loan was $125,000, the original term was 25 years, and there are 20 years left on the mortgage. Round your answera. $1,050
b. $1,150
c. $1,000
d. $1,100
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Ответ:
Option A is correct
Explanation:
R = [P*(r/12)]/[1-(12/(12+r))]^(12*r)
t = time = 25 years
P = initial principal = 125000
R = initial interest rate = 9.75
So therefore:
R = 125000* (0.0975/12)/[ 1 - (12/(12+0.975)]^(300)
R = 1015.625/(1-0.088)
R = $1113.62 per month
Compounding R for the first five years = 6205.4
Balance = 125000 - 6205.4 = 118792.7
So therefore with the new rate = 8.75
New P = 118792.7
t = 20
R = 118792.7*(0.0875/12)/[1- (12/(12+0.0875))^(240)]
R = 866.197/0.825
R = 1049.93 = $1050
Ответ: