a 10 year Adjustable rate mortgage of $23115 is being repaid with quarterly inst

Question

a 10 year Adjustable rate mortgage of $23115 is being repaid with quarterly installments of 1,000 based on an initial interest rate of 12% compounded quarterly. Immediately after the 12th payment, the interest rate went up to 14% compounded quarterly. The quarterly installments remain at 1,000. Calculate the loan balance immediately after the 24th payment. A 12,000, B 12550, C 12950, D 13350, E 13750
Please, no excel spreadsheets. I would preferably like to know how to do this in a finance calculator. Thank you. a 10 year Adjustable rate mortgage of $23115 is being repaid with quarterly installments of 1,000 based on an initial interest rate of 12% compounded quarterly. Immediately after the 12th payment, the interest rate went up to 14% compounded quarterly. The quarterly installments remain at 1,000. Calculate the loan balance immediately after the 24th payment. A 12,000, B 12550, C 12950, D 13350, E 13750
Please, no excel spreadsheets. I would preferably like to know how to do this in a finance calculator. Thank you. a 10 year Adjustable rate mortgage of $23115 is being repaid with quarterly installments of 1,000 based on an initial interest rate of 12% compounded quarterly. Immediately after the 12th payment, the interest rate went up to 14% compounded quarterly. The quarterly installments remain at 1,000. Calculate the loan balance immediately after the 24th payment. A 12,000, B 12550, C 12950, D 13350, E 13750
Please, no excel spreadsheets. I would preferably like to know how to do this in a finance calculator. Thank you.

Explanation / Answer

Solution:

Loan Amount Instalment Paid Balance of Loan Interest Balance of Loan Amount 1 23,115 1,000                      306.55               693.45             22,808.45 2                           22,808.45 1,000                      315.75               684.25             22,492.70 3                           22,492.70 1,000                      325.22               674.78             22,167.48 4                           22,167.48 1,000                      334.98               665.02             21,832.51 5                           21,832.51 1,000                      345.02               654.98             21,487.48 6                           21,487.48 1,000                      355.38               644.62             21,132.11 7                           21,132.11 1,000                      366.04               633.96             20,766.07 8                           20,766.07 1,000                      377.02               622.98             20,389.05 9                           20,389.05 1,000                      388.33               611.67             20,000.73 10                           20,000.73 1,000                      399.98               600.02             19,600.75 11                           19,600.75 1,000                      411.98               588.02             19,188.77 12                           19,188.77 1,000                      424.34               575.66             18,764.43 13                           18,764.43 1,000                      437.07               562.93             18,327.37 14                           18,327.37 1,000                      450.18               549.82             17,877.19 15                           17,877.19 1,000                      463.68               536.32             17,413.50 16                           17,413.50 1,000                      477.59               522.41             16,935.91 17                           16,935.91 1,000                      491.92               508.08             16,443.99 18                           16,443.99 1,000                      506.68               493.32             15,937.30 19                           15,937.30 1,000                      521.88               478.12             15,415.42 20                           15,415.42 1,000                      537.54               462.46             14,877.89 21                           14,877.89 1,000                      553.66               446.34             14,324.22 22                           14,324.22 1,000                      570.27               429.73             13,753.95 23                           13,753.95 1,000                      587.38               412.62             13,166.57 24                           13,166.57 1,000                      605.00               395.00             12,561.57 The answer to the above question is $ 12,561.57 or B 12,550

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