A mortgage broker is offering a $289,000 33-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 5.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 9.5 percent APR.
What are the monthly payments in the first two years?
What are the monthly payments after the second year?
Mortgage Payment Calculation
Mortgage payments can be calculate in most spreadsheet software. Microsoft Excel offers a suite of useful tools to for payment calculations of any amortizing loan.
Answer and Explanation:
To calculate the mortgage payment, we can use Microsoft Excel. The steps are as follows:
1. Open Excel and click on any cell\
2. type in...
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from Intro to Business: Help and ReviewChapter 24 / Lesson 9