For the first two years of her mortgage Theresa was making fixed monthly payments of $1,000...
For the first two years of her mortgage Theresa was making fixed monthly payments of $1,000 per month. Her two year fixed-rate period has just ended, and now she must pay an interest rate of 6%. The amount outstanding on the mortgage is $170,000, and the mortgage will last for 28 years more. Calculate the increase in monthly repayments that she must now pay. Calculate your answer to the nearest dollar.
Homework Answers
Rate = 6%
Amount outstanding (PV) = 170,000
Number of years(nper) = 28
Monthly repayment(PMT) = ![=PMT(6%/12,28*12,170000) PMT(rate, nper, pv, [fv], [type])](http://img.homeworklib.com/questions/a49e6970-75a7-11ea-997f-99aa52cdc1e3.png?x-oss-process=image/resize,w_560)
= $
1045.71
Increase in monthly repayment = 1045.71 - 1000 = 45.71 = approx $ 46
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