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Mathematics, 11.11.2020 14:00 babyduckies37
John Anderson bought a home with a 10.5% adjustable rate mortgage for 30 years. He paid $9.99 monthly per
thousand on his original loan. At the end of 5 years he owes the bank $65,000. Now that interest rates have gone up to
12.5%, the bank will renew the mortgage at this rate or John can pay $65,000. John decides to renew and will now pay
$10.68 monthly per thousand on his loan. You can ignore the small amount of principal that has been paid.
What is the amount of the old monthly payment?
What is the amount of the new monthly payment?
What is the percent of increase in his new monthly payment?
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Answers: 2
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