- 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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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