dayolivia845
Answered

Sandra Williams bought a home with a 10.25% adjustable rate mortgage for 25 years. She paid $9.27 monthly per thousand on her original loan. At the end of 3 years she owes the bank $50,000. Since then, interest rates have increased to 12.75%. The bank will renew the mortgage at this rate, or Sandra can pay the bank $50,000. She decides to renew and will now pay $11.10 monthly per thousand on her loan. (You can ignore the small amount of principal paid during the 3 years.)

The old monthly payment is $
.
The new monthly payment is $
.
The percent increase in her monthly payment (to the nearest tenth) is
%.



Answer :

The old monthly payment was =  9.27 x 50 = 463.5

The new monthly payment is = 11.10 x 50 = 555

The percent increase in his monthly payment is 1.947%

Given,

Sandra Williams bought a home with a 10.25% adjustable rate mortgage for 25 years. She paid $9.27 monthly per thousand on his original loan

According to the question:

So, per thousand value of $65000 is 50000/1000 =50

Now, the old monthly payment was =  9.27 x 50 = 463.5

She decides to renew and will now pay $11.10 monthly per thousand on his loan.

So, the new monthly payment is = 11.10 x 50 = 555

The percent increase in his monthly payment is= 11.10 /9.27 - 1 x 100

19.7411 % and to nearest tenth it is 1.947%

Hence, the old monthly payment was =  9.27 x 50 = 463.5

the new monthly payment is = 11.10 x 50 = 555

The percent increase in his monthly payment is 1.947%

Learn more about Percent at:

https://brainly.com/question/14517915

#SPJ1

Other Questions