A household takes out a fully amortized adjustable-rate loan for $640,000 over a 25-year term at an initial rate of 4.2%. After 3 years the interest rate increases to 6.2%. How much do the monthly repayments increase by?
a) $676.60
b) $528.44
c) $502.69
d) $443.80

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The detailed answer for the above question is provided below An adjustablerate loan is a type of mortgage where the interest rate can change periodica... View the full answer