Amortized Loans and Outstanding Loan Balances?
A 15 year mortgage of 117,134.8- is being repaid with monthly payments of $ 988.45 based upon nominal interest rate of 6% convertible monthly. Immediately after the 60th payment, the interest rate is increased to a nominal interest rate of 7.5% convertible monthly. The monthly payments remain at $ 988.45.
A. Calculate the loan balance immediately after the 84th payment.
B. Calculate the amount of interest in the 84th payment.
C. Calculate the amount of the balloon payment
I have figured out that the first effective monthly interest rate is .005 and the second effective monthly interest rate is .00625 but after that I’m stuck. Any help would be great!