Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a period of 10 years. The interest rate on the loan is 6%, compounded monthly. Immediately after the 60th repayment, the central bank increased the market interest rate and the bank subsequently raised the loan's interest rate to 8% p.a., compounded monthly. If Tedros decides to keep the number of remaining payments unchanged, what is the size of the new monthly repayments?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a period of 10 years. The interest rate on the loan is 6%, compounded monthly.
Immediately after the 60th repayment, the central bank increased the market interest rate and the bank subsequently raised the loan's interest rate to 8% p.a., compounded monthly. If Tedros decides to keep the number of remaining payments unchanged, what is the size of the new monthly repayments?
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