choices:

$2905

$2353

$2078

$2625

$2388

You have decided to buy a 2,000 square feet house in Denton, dose to a good public school. The average price in the area is $190 per square feet. The bank will finance 80% of the house value, so you need savings for the 20% down payment. You sign a 30 -year 5/1 adjustable rate mortgage (ARM). which carries a 7% fixed rate for the first 5 years, and then (after 5 years) is adjusted to the 1 year LIBOR +1.25%. Compute your monthly payments in 5 years (month 61 ) if the LIBOR is 7.5% Multiple Choice $2,905