MATH SOLVE

4 months ago

Q:
# Cliff Branch 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 3 years he owes the bank $65,000. Since interest rates have risen to 12.5%, the bank will renew the mortgage at this rate, or Cliff can pay the bank $65,000. He decides to renew and will now pay $10.68 monthly per thousand on his loan. (You can ignore the small amount of principal paid during the 3 years.)i cant figure this out

Accepted Solution

A:

I'm Unsure, But Here's What I Found.

9.99Γ65=649.35

10.68Γ65=694.2

((10.68Γ·9.99)β1)Γ100=6.9%

9.99Γ65=649.35

10.68Γ65=694.2

((10.68Γ·9.99)β1)Γ100=6.9%