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 payments that she must now pay. Round your answer to the nearest dollar.

Question

Sadie Webster

Mathematics

4 October, 13:53

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 payments that she must now pay. Round your answer to the nearest dollar.

+4

Answers (1)

Know the Answer?

Karlee Rangel · Answer 1

Answer: Approximately $ 46

Explanation:

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]) = $ 1045.71

Increase in monthly repayment = 1045.71 - 1000 = 45.71 = approx $ 46

=PMT (6%/12,28*12,170000) PMT (rate, nper, pv, [fv], [type])