At what nominal annual rate of interest will a $196,000 variable-rate mortgage be amortized by monthly...

Question

Question

At what nominal annual rate of interest will a $196,000 variable-rate mortgage be amortized by monthly payments of $1,666.87

Answer 1

Answer #1

e. 8.37%

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Mortgage Amount Term(years) Monthly payment Number of monthly payment $196,000.00 20 $1,666.87 240) Monthly interest rate Sem

Cell reference -

B 196000 Mortgage Amount Term(years) Monthly payment Number of monthly payment 1666.87 =12*C3 Monthly interest rate Semi-annu

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

Answer 2

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