Question: Consider a variable rate mortgage for $ 1 0 0 , 0 0 0 with a 3 0 0 - month amortization period, and with

Consider a variable rate mortgage for $100,000 with a 300-month amortization period, and with a nominal semiannual rate of 5% at loan origination. Suppose that the rate is held constant for the first 12 monthly payments. Then in month 13(so affecting the 13th payment) and for the remainder of the loan's life, the rate on the loan rises to a nominal semiannual rate of 7%. What will be the outstanding balance after month 14?

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