I'm not sure how to interpret what my teacher is asking?
i have a mortgage for 10 years, for first 5 years i pay 3 percent semi annually for mortgage payment.
contract is renewed after 5 years, and the rate has increased by 2 percent.
does he mean my rate increased 2 percent semi annually or 2 percent for 1 year?
i'm confused how to interpret, i think it is semi annual? Do you think so too?
thank you!
Read more: How do i interpret my teacher question? (finance/interest rates)?
