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A home buyer borrowed a 5/1 ARM (30 year amortization) with an annual interest rate of 3% fixed for the first five years. The amount

  1. A home buyer borrowed a 5/1 ARM (30 year amortization) with an annual interest rate of 3% fixed for the first five years. The amount of the loan is $600,000. (15 points)
    1. Compute her monthly mortgage payment for the first five years.
    2. In the first month, how much is she paying the interest? How much is she paying the principal?

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