RobertDay
New member
- Sep 17, 2011
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8 years ago, I took out a 20 yr mortgage of $100000 at an interest rate of 11.5% with monthly payments. The interest rate has changed to 12.5%. Originally I was repaying $1066.43 a month. Using the formula for present value of an annuity (and possibly future value of annuity if needed)
a) How long will it take me to pay off the mortgage with the new interest rate, but still paying $1066 a month?
b) If I were to finish the mortgage in the next 12 years as planned, what would be my new monthly repayments.
I believe the answer to a) is either another 16.49 or 16.85 years, and the answer to b) is either $1117 or $1198.
Thanks
a) How long will it take me to pay off the mortgage with the new interest rate, but still paying $1066 a month?
b) If I were to finish the mortgage in the next 12 years as planned, what would be my new monthly repayments.
I believe the answer to a) is either another 16.49 or 16.85 years, and the answer to b) is either $1117 or $1198.
Thanks