Macy has a 20 year adjustable rate mortgage with a fixed rate for the first 7 years. In the 8th year, the interest rate rises to

Question

weeeeeb [17]

3 years ago

9

Macy has a 20 year adjustable rate mortgage with a fixed rate for the first 7 years. In the 8th year, the interest rate rises to

6.2%. The remaining balance at the end of the 7th years is $398,381.20. What is the monthly payment in the 8th year?

Mathematics

2 answers:

Crank · Answer 1 · 2021-12-09T15:41:39+03:00

The answer is indeed 3,725.90. The reason why is because <span>with each adjustment, you take the remaining balance and calculate a fixed rate loan for the remaining time period at the new rate. When you follow that procedure with the data you already have, you get that answer.</span>

natka813 [3] · Answer 2 · 2021-12-09T16:48:51+03:00

natka813 [3]3 years ago

4 0

Answer:

3725.90

Step-by-step explanation: