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Anon25 [30]
3 years ago
11

Cliff Branch bought a home with a 10.5% adjustable rate mortgage for 30 years. He paid $9.99 monthly per thousand on his origina

l 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.)
What was the old monthly payment?

What is the new monthly payment?

What is the percent increase in his monthly payment (to the nearest tenth)?
Mathematics
2 answers:
ioda3 years ago
6 0

Answer:

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

So, per thousand value of $65000 is 65000/1000=65

Now, the old monthly payment was = 9.99*65=649.35

He decides to renew and will now pay $10.68 monthly per thousand on his loan.

So, the new monthly payment is = 10.68*65=694.20

The percent increase in his monthly payment is=

(\frac{10.68}{9.99})-1*100 =6.906% and to nearest tenth it is 6.9%

denis-greek [22]3 years ago
3 0
9.99×65=649.35

10.68×65=694.2

((10.68÷9.99)−1)×100=6.9%
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