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3. Consider a loan with the following terms: Unrestricted ARM Loan Amount = $150,000 Starting Rate = 7% Term = 30 Years Adjustment Interval =

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3. Consider a loan with the following terms: Unrestricted ARM Loan Amount = $150,000 Starting Rate = 7% Term = 30 Years Adjustment Interval = 1 Year a. What is the initial monthly payment ? b. What is the loan balance at the end of year 1? C. What is the new monthly payment at the beginning of year 2 if the new composite rate is 7.5%

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