QUESTION 21 From an , Benninga and Mofkadi, C 2018, 2011, 2006 VARIABLE INPUTS "Michael Smith was in trouble: He was unemployed and living on his monthly disability pay of $1,500 His credit card debts of $20,000 we threatening to overwhelm his small income. Every month in which he delayed paying the credit card debt cost him 1.8% on the remaining balance. His only asset was his house, on which he had a $70,000 mortgage Credit Card Debt Credit Card Rate (Mthly Rate) Credit Card APR Monthly Disability Pay Then Michael got a phone call from "We Finance You" Financial Corporation: The corporation offered to refinance Michael's mortgage. Their representative explained to Michael that, with the rise in real estate values, Michael's house could now be re-mortgaged for $95,000. This amount would allow Michael to repay his credit card debts and even leave him with some money. Here are some additional facts Original Mortgage Balance Current Home Value New Mortgage APR: Monthly N.M. Interest Rate New Mortgage Fees: Term of New Mortgage (Yrs) Number of Periods in Loan , The new mortgage would be for 25 years and would have an annual interest rate of 9.23% (APR) The mortgage would be repayable in equal monthly payments over this term, at monthly interest rate of 9.23%/12-07691796. The fees on the new mortgage are $5,000 to be paid today There are no penalties involved in repaying the S70,000 existing mortgage. Answer the following questions: A. What will Michael's monthly payments be on the new loan? Monthly Payment: #N/A How much money will Michael have to live on after he pays his new mortgage? Remaining $ per month #N/A C. After repaying his credit card debts, how much money will Michael have left? Debt Cash From New Mortgage Remaining $ #N/A #N/A #N/A D. What is the effective annual interest rate on the "We Finance You" Mortgage? , Monthly Rate EAIR #N/A #N/A