If an adjustable-rate 30-year mortgage for $121,000 starts at 4 percent and increases to 5.5 percent, what is the amount of increase ofthe monthly payment? (Use Exhibit 9–9.) (Round your answer to 2 decimal places.)Increase in Monthly Payment Term Rate30 Years25 Yoars20 Years15 Yoars3.0%$4.22$4.74$5.55$6.913.54.495.015.807.15404.775.286.067.404.55.075.566.337.655.05.375.856.607.915.55.686.146.888.176.06.006.447168.436.56.326.677.458.717.06.657.067.758.987.56.997.398.069.278.07.347.728.369.568.57.698.058.689.85

If an adjustable-rate 30-year mortgage for $121,000 starts at 4 percent and increases to 5.5 percent, what is the amount of increase of the monthly payment? (Use Exhibit 9–9.) (Round your answer to 2 decimal places.) Increase in Monthly Payment

If an adjustable-rate 30-year mortgage for $121,000 starts at 4 percent and increases to 5.5 percent, what is the amount of increase of the monthly payment? (Use Exhibit 9–9.) (Round your answer to 2 decimal places.) Increase in Monthly Payment

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

If an adjustable-rate 30-year mortgage for $121,000 starts at 4 percent and increases to 5.5 percent, what is the amount of increase of
the monthly payment? (Use Exhibit 9–9.) (Round your answer to 2 decimal places.)
Increase in Monthly Payment

Term Rate
30 Years
25 Yoars
20 Years
15 Yoars
3.0%
$4.22
$4.74
$5.55
$6.91
3.5
4.49
5.01
5.80
7.15
40
4.77
5.28
6.06
7.40
4.5
5.07
5.56
6.33
7.65
5.0
5.37
5.85
6.60
7.91
5.5
5.68
6.14
6.88
8.17
6.0
6.00
6.44
716
8.43
6.5
6.32
6.67
7.45
8.71
7.0
6.65
7.06
7.75
8.98
7.5
6.99
7.39
8.06
9.27
8.0
7.34
7.72
8.36
9.56
8.5
7.69
8.05
8.68
9.85

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