John wanted to purchase a house at price $7million. He planned to borrow 80% of...
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John wanted to purchase a house at price $7million. He planned to borrow 80% of the total amount through mortgage loan provided by HSBC. HSBC charged him an annual interest rate at Prime Rate minus 4% and he had to pay off the loan in 25 years. The first payment was made one month after the purchase when the prime rate was 8%. 10 years later, HSBC adjusted the prime rate to 10%. What is the monthly payment during 10th year to 25th year?
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