9. [-/2 Points] DETAILS FAPP10 22.3.029. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER In a 2/28 "hybrid" adjustable-rate mortgage (ARM), the initial interest rate is fixed for 2 years and then is adjusted every 6 months. (You usually pay "points" up front at closing in exchange for the "rate lock" for the first 2 years.) Suppose you buy a house with a $140,000 mortgage, with a 2/28 ARM with initial rate of 3%; and suppose that 2 years later, the interest rate goes up to 5%. (Round your answers to two decimal places.) (a) What was your payment originally, at 3%? (b) What is your new payment? (Hint: The amount of the loan is no longer $200,000, and you have only 28 years to pay it off.) 10. [0/1 Points] DETAILS PREVIOUS ANSWERS FAPP10 22.4.041. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER You need to buy a car and finance $6000 of the cost. The dealer offers you a 4.9% add-on loan to be repaid in monthly installments over four years. How much is your monthly payment? X Submit Answer 11. [-/1 Points] DETAILS FAPP10 22.4.046. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Payday lenders provide small loans until the borrower's next payday. The borrower receives the desired cash in exchange for a postdated check in the amount of the loan plus a fee, which is usually a percentage of the loan amount (often 15% to 20% for a two-week loan). In many states, there are now more payday loan offices than Mcdonald's fast-food outlets. The average loan amount is $300. You can think of such a loan as an add-on loan with a single payment at the end of the loan term. For one payday lender, the fee for a $300 loan for up to four weeks is $45. What is the APR if the loan is for the full four weeks and interest accrues after every four weeks? 12. [-/1 Points] DETAILS FAPP10 22.5.057. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Suppose a man retires at age 65, and in addition to Social Security, he needs $3000 per month in income. Based on an expected lifetime of 204 more months, how much would he have to invest in a life income annuity earning 4% APR to pay that much per year? (Round your answer to two decimal places.) $1