Question

The charts show the effect of an interest rate adjustment on an adjustable-rate mortgage.

Before adjustment, the principal is 200,000 dollars, the monthly interest rate is .4 percent, the total number of monthly payments remaining is 360, and the monthly payment is 1,059.85. After adjustment, the principal is 187,000, the monthly interest rate is 0.5 percent, the total number of payments remaining is 336, and the monthly payment is 1,162.56.

The change in interest rate shown in the charts resulted in

a lower interest rate.
a higher principal.
a higher monthly payment.
a higher number of payments.

Answer 1

its c

Explanation:

im taking the unit test on edge

Answer 2

C. a higher monthly payment.

Explanation:

Answer options:

Rate adjustment resulted in

A. a lower interest rate.

• No, interest rate increased from 0.4 to 0.5 percent

B. a higher principal.

• No, principal decreased from $200000 to $187000

C. a higher monthly payment.

• Yes, monthly payment increased from $1059.85 to $1162.56

D. a higher number of payments.

• No, number of payments remained as 336