Natan Nave bought a home with a 13% adjustable rate mortgage for 20 years. He paid $11.72 monthly per thousand on his original loan. At the end of 4 years he owes the bank $75,000. Now that interest rates have gone down to 10%, the
bank will renew the mortgage at this rate or Natan can pay $75,000. Natan decides to renew and will pay $9.66
monthly per thousand on this loan.
What is the amount of the old monthly payment and the new monthly payment? What is the percent of decrease in his
new monthly payment? You can ignore the small amount of principal that has been paid.
old monthly payment = $
new monthly payment = $
% increase