8. Elaine takes out a $110,000 mortgage on December 1, 2010. Elaine will repay the mortgage...

 

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8. Elaine takes out a $110,000 mortgage on December 1, 2010. Elaine will repay the mortgage over 20 years with level monthly payments at an effective annual interest rate of 4%. The first payment is due January 1, 2011. After making payment number 84, Elaine does not make any new payments for the entire next year. Elaine starts making revised monthly payments, of amount P, beginning January 1, 2019. The amount P is such that Elaine will pay off the loan in the original, 20-year term - that is to say, her last payment will be due December 1, 2030. Determine P. 8. Elaine takes out a $110,000 mortgage on December 1, 2010. Elaine will repay the mortgage over 20 years with level monthly payments at an effective annual interest rate of 4%. The first payment is due January 1, 2011. After making payment number 84, Elaine does not make any new payments for the entire next year. Elaine starts making revised monthly payments, of amount P, beginning January 1, 2019. The amount P is such that Elaine will pay off the loan in the original, 20-year term - that is to say, her last payment will be due December 1, 2030. Determine P.

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Heres how to determine the revised monthly payment P Elaine needs to make 1 Define variables P Revised monthly payment unknown Loan amount L 110000 An... View the full answer