- A couple has a $475,000 mortgage amortized over 30 years with monthly payments. They chose to lock in a rate of j2-4% for the first 5 years. a) Calculate their original mortgage payment (rounded up to the next cent). b) Calculate the balance remaining after five years. c) Calculate their new monthly payment (rounded up to the next cent) if they refinance at j2-5% after the first five years are up. d) How much interest did they pay during the first 5 years?

- A couple has a $475,000 mortgage amortized over 30 years with monthly payments. They chose to lock in a rate of j2-4% for the first 5 years. a) Calculate their original mortgage payment (rounded up to the next cent). b) Calculate the balance remaining after five years. c) Calculate their new monthly payment (rounded up to the next cent) if they refinance at j2-5% after the first five years are up. d) How much interest did they pay during the first 5 years?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3CQQ

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