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The Switzers are nearing the end of the first five-year term of a $200,000 mortgage loan...

The Switzers are nearing the end of the first five-year term of a $200,000 mortgage loan with a 25-year amortization. The interest rate has been 6.5% compounded semiannually for the initial term. How much will their monthly payments increase if the interest rate upon renewal is 7.5% compounded semiannually and the original amortization period is continued? (Do not round the intermediate calculations.

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The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

ekkarill92 answered 2 years ago
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