On October 1 2022, you take a mortgage that is repaid in fixed monthly instalments for 20 years at the end of each month (we assume that there are 12 equal months in a year). The loan amount is 267000. The loan interest rate is variable, i.e. the bank changes it every set interval.

Please calculate the amount of the fixed loan instalment (as described above).

Then, on May 1 2023 bank increases the interest rate on your loan by 2 percentage points.

Please calculate the new instalment.

The current interest rate should be 5% (capitalized annually).