document.write( "Question 1196141: Please help with the homework:
\n" ); document.write( "Liza purchases an apartment by paying a deposit of R60000, and obtains a 20 year loan for the balance of R120000 at 20% interest rate per annum compounded monthly. After four and half years, the bank adjusts the interest rate to 18% per annum compound monthly. What is the new amount that he must pay if the term of the loan remains the same? \n" ); document.write( "
Algebra.Com's Answer #828904 by MathTherapy(10552)\"\" \"About 
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Please help with the homework:
\n" ); document.write( "Liza purchases an apartment by paying a deposit of R60000, and obtains a 20 year loan for the balance of R120000 at 20% interest rate per annum compounded monthly. After four and half years, the bank adjusts the interest rate to 18% per annum compound monthly. What is the new amount that he must pay if the term of the loan remains the same?
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STEP 1: Determine the monthly payment. \r\n" );
document.write( "        However, instead of using an online mortgage calculator, I believe it'd be better to find this \r\n" );
document.write( "        using the following formula:\r\n" );
document.write( "          , where: \r\n" );
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document.write( "STEP 2: Calculate the PRESENT VALUE of an ANNUITY, for 15.5 years, or 15.5(12) = 186 FUTURE monthly payments \r\n" );
document.write( "        (calculated in STEP 1), and at the same interest rate (.2, or 20%).\r\n" );
document.write( "      **Note that 4.5 years' (54 monthly) payments were already made. \r\n" );
document.write( "        Again, instead of using an online  calculator, I believe it'd be better to find this \r\n" );
document.write( "        using the following formula:\r\n" );
document.write( "          , where: \r\n" );
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document.write( "STEP 3: Determine the NEW monthly payment. \r\n" );
document.write( "        However, instead of using an online mortgage calculator, I believe it'd be better to find this \r\n" );
document.write( "        using the following formula:\r\n" );
document.write( "          , where: \r\n" );
document.write( "\r\n" );
document.write( "When all is \"said and done,\" the NEW, lowered monthly mortgage payment should be $1,800.47, down from $2,038.59.\r\n" );
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