The Simpsons are moving into their new home. They purchased it for $250,000 by putting a down payment of $120,000 towards the purchase and paying the balance with a $130,000 mortgage amortized over 20 years at 6.75% per annum (for a 3-year term). At the end of the 3-year term, the interest rate increased by 0.5%.
What is the approximate increase in their monthly payment?
O $29
O $34
O $39
O $45
