Question

The charts show the effect of an interest rate adjustment on an adjustable-rate mortgage.

Answer 1

Answer:

C. a higher monthly payment.

Step-by-step explanation:

Answer options:

Rate adjustment resulted in

A. a lower interest rate.

• No, interest rate increased from 0.4 to 0.5 percent

B. a higher principal.

• No, principal decreased from $200000 to $187000

C. a higher monthly payment.

• Yes, monthly payment increased from $1059.85 to $1162.56

D. a higher number of payments.

• No, number of payments remained as 336