question archive A variable-rate mortgage of ?$125,000 is amortized over 20 years by equal monthly payments
A variable-rate mortgage of ?$125,000 is amortized over 20 years by equal monthly payments
Subject:MathPrice: Bought3
A variable-rate mortgage of ?$125,000 is amortized over 20 years by equal monthly payments. After 18 months the original interest rate of 6?% compounded semi-annually was raised to 8.7?% compounded semi-annually. Three years after the mortgage was taken? out, it was renewed at the request of the mortgagor at a fixed rate of 7.2?% compounded semi-annually for a? four-year term.
?(a) Calculate the mortgage balance after 18 months.
?(b) Compute the size of the new monthly payment at the 8.7?% rate of interest.
?(c) Determine the mortgage balance at the end of the? four-year term
?(a) The mortgage balance is ?$ after 18 months.
?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)
