The Smiths were just approved for a 25 year mortgage at an 11% fixed rate. If they had not filed bankruptcy in the past, they could have gotten a rate of 7%. If their loan amount is $128,000, how much more per month will the Smiths be paying for their mortgage as a result of their bankruptcy?

Question

Allyson Rios

Mathematics

22 June, 03:37

The Smiths were just approved for a 25 year mortgage at an 11% fixed rate. If they had not filed bankruptcy in the past, they could have gotten a rate of 7%. If their loan amount is $128,000, how much more per month will the Smiths be paying for their mortgage as a result of their bankruptcy?

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Teeny · Answer 1

Since they got bankrupt, the fixed rate that they'll follow is 11%. Since the amount of the loan is 128,000 and the rate is 11%, then multiply 128,000 with 11% in order to get 14080. This is added to the principal amount 128,000. The final answer to the problem is 142080.