A Sub-Prime borrower agrees to a mortgage loan for 360 months with a three-year teaser rate of 1.90% while the market rate of return for the risks involved is 8.20%. The borrower puts down 3% on a $420,000 house and finances the remainder. If the loan is not refinanced, what will be the monthly payment after the teaser period ends?

Multiple Choice

$3,533.64

$3,499.66

$2,889.40

$3,789.60

None of the above