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A lender is offering a teaser interest rate of 1.5% on the first year of a 30 year loan of $175,000, while current market fixed
A lender is offering a teaser interest rate of 1.5% on the first year of a 30 year loan of $175,000, while current market fixed rates are 6%. The loan payments for Years 2-30 will be based on the market fixed rate of 6%. How much accrued interest has been added to the original loan balance due to negative amortization in the first year? A. $2,904 B. $3,343 C. $3,789 D. $3,112
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