- 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
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Chapter1: Making Economics Decisions
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- 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?
Transcribed Image Text:- 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?
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