Mortgage amount : $175000
Term in years : 22
Interest rate: 9%
Increase in interest rate :1%
need to find:
Increase in monthly payment
percent change
I will find the payment for the first case:
let the payment be P
i = .09/12 = .0075
n= 12(22) = 264
P(1 - 1..0075^-264)/.0075 = 175000
P = .0075(175000)/(1 - 1.0075^-264) = $1524.56
Now the new rate is said to be 10%
repeat the above process, them compare the payments
take the difference , then find the percentage increase.