Question

20 Problem 5-55 Teaser Rate Mortgage (LG5-9) A mortgage broker is offering a 30-year $178,900 mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 3.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 6.5 percent APR. 5 oints What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) eBook Print References Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment

Answer 1

1.
=PMT(3.5%/12,12*30,-178900)=803.340946489987

2.
=PMT(6.5%/12,12*28,-FV(3.5%/12,12*2,PMT(3.5%/12,12*30,-178900),-178900))=1112.29341641003