Modeling

3. Trevor (no relation to Trefor) owes $400,000 on his mortgage. The current interest rate is 3% and the amortization period is 28 years until it is paid off. In 2 years, Trevor gets to renew his mortgage. The Bank of Canada has signaled that interest rates are going to be kept low for a number of years and so Trevor is hoping to be able to renew at 1.5% instead for what will be at that time a 26 year amortization period. These interest rates are annual interest rates (i.e. let's ignore Canadian law that means these posted rates are actually computed semi-annually, we will just do annually). What will be Trevor's new monthly payment 2 years from now? No, you can't find a mortgage calculator online to figure this out, you have to show your work:D