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vodomira [7]
3 years ago
14

What is the new payment on a 25-year, monthly payment, adjustable-rate mortgage after five years if the interest rate changes fr

om 9.75% to 8.75% The original amount of the loan was $125,000, the original term was 25 years, and there are 20 years left on the mortgage. Round your answera. $1,050
b. $1,150
c. $1,000
d. $1,100
Business
1 answer:
Neko [114]3 years ago
4 0

Answer:

Option A is correct

Explanation:

R = [P*(r/12)]/[1-(12/(12+r))]^(12*r)

t = time = 25 years

P = initial principal = 125000

R = initial interest rate = 9.75

So therefore:

R = 125000* (0.0975/12)/[ 1 - (12/(12+0.975)]^(300)

R = 1015.625/(1-0.088)

R = $1113.62 per month

Compounding R for the first five years = 6205.4

Balance = 125000 - 6205.4 = 118792.7

So therefore with the new rate = 8.75

New P = 118792.7

t = 20

R = 118792.7*(0.0875/12)/[1- (12/(12+0.0875))^(240)]

R = 866.197/0.825

R = 1049.93 = $1050

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Explanation:

Solution

An operational framework refers to the guide for the policies, standards, objectives, training, processes of any organization.

The way in which the business is executed is decided by the operational framework and it promoted the culture and identity. this may also integrate good governance principles and develop the values and departments within the organization. several elements are included in a different framework.

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The department can think of implementing the Kaizen, Six Sigma methods for the quality improvement.

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