Question: Five years ago, Chris borrowed $ 2 8 0 , 0 0 0 to purchase a house in Sandy Lake. At the time, the quoted

Five years ago, Chris borrowed $

280, 000

to purchase a house in Sandy Lake. At the time, the quoted rate on the mortgage was

4

percent, the amortization period was

25

years, the term was

5

years, and the payments were made monthly. Now that the term of the mortgage is complete, Chris must renegotiate his mortgage. If the current market rate for mortgages is

6

percent, what is Chris

s new monthly payment?

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