Question
A variable-rate mortgage of $ is amortized over years by equal payments. After months the original interest rate of % compounded was raised to %
A variable-rate mortgage of $ is amortized over years by equal payments. After months the original interest rate of % compounded was raised to % compounded . years after the mortgage was taken out, it was renewed at the request of the mortgagor at a fixed rate of % compounded for a four-year term.
(a) Calculate the mortgage balance after months.
(b) Compute the size of the new payment at the % rate of interest.
(c) Determine the mortgage balance at the end of the four-year term.
Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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