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A borrower takes out a 30-year adjustable rate mortgage loan for $278,000 with monthly payments. The first two years of the loan have a teaser

A borrower takes out a 30-year adjustable rate mortgage loan for $278,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 1% interest rate cap. On the reset date, the composite rate is 6%. What is the payment in the third year?

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