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An Adjustable Rate Mortgage (ARM) for $145,000 is made at a time when the expected start rate is 8%. At the end of the each
An Adjustable Rate Mortgage (ARM) for $145,000 is made at a time when the expected start rate is 8%. At the end of the each year interest rate will be reset. The loan is fully amortizing, has a maturity of 20 years and payments will be made monthly. Assuming that the interest rate is 7% at the beginning of year 2, what will be the monthly payments during the second year?
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