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An ARM loan for 30 years at an annual interest rate of 5% and a balance of $75,000 was made. Suppose the market index rises
An ARM loan for 30 years at an annual interest rate of 5% and a balance of $75,000 was made. Suppose the market index rises at the end of one year and the new interest rate on the ARM is 8%. What us the new monthly payment on the outstanding loan balance for the remaining 29 years?
Answer is $546.77
My question is how do I get to this answer?
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