Question
you purchase a house for $450,000 using a 30-year adjustable-rate mortgage that makes monthly payments with an annualized interest Rate of 12% After 9 years,
you purchase a house for $450,000 using a 30-year adjustable-rate mortgage that makes monthly payments with an annualized interest Rate of 12% After 9 years, the interest rate changes to 15% and after an additional 11 years the interest rate changes to 4% Calculate: How much are the monthly mortgage payments under each interest rate? Calculate: Explain how the changes in time, interest rate and principal change the monthly mortgage payments.
the problem is answered in Excel
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
