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Assume your lender offers you a 30 year 250,000 ARM with a teaser rate for the first year equal to LIBOR, rather than LIBOR +

Assume your lender offers you a 30 year 250,000 ARM with a teaser rate for the first year equal to LIBOR, rather than LIBOR + margin of 2% for years 2-30.

What is your monthly payment for the first year if LIBOR is 4% initially (Round to nearest cent, e.g. 500.01)

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