Aaron Jones bought a home with 10% interest for 30 years. He was paying $8.78 monthly per thousand on his first loan. At the end of the mortgage he owes the bank $55,000. Interest then went up tp 12.25%, the bank can renew the mortgage at this new rate. Jim now pays $10.48 monthly per thousand on this loan. What is the percent of increase in his new monthly payment?

Question

Maliyah

Mathematics

30 October, 06:07

Aaron Jones bought a home with 10% interest for 30 years. He was paying $8.78 monthly per thousand on his first loan. At the end of the mortgage he owes the bank $55,000. Interest then went up tp 12.25%, the bank can renew the mortgage at this new rate. Jim now pays $10.48 monthly per thousand on this loan. What is the percent of increase in his new monthly payment?

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Answers (1)

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Patricia Scott · Answer 1

The % increase in Jim's monthly payment = 19.36%

Step-by-step explanation:

The amount Jim was paying monthly on the first loan = $8.78

The amount he now pays monthly = $10.48

The increase in Jim's payment = $10.48 - $8.78

The increase in Jim's monthly payment = $1.7

The % increase in Jim's monthly payment = 1.7/8.78 * 100%

The % increase in Jim's monthly payment = 19.36%