Two years ago Victoria got a fixed mortgage to buy a house in for 10 million at 20 years, at a rate of 3 percent.

Her best friend Kristine just moved to the same place to pursue her dreams, and asked for a new mortgage to acquire her new home. The bank informed Kristine that the interest rate for long-term loans is now 5 percent. Kristine texted her friend with the news

1. Do you think that the news were well taken by Victoria? Why?

2. What is the balance of Victorias loan?

3. How much would Victoria paid monthly with the new interest rates?