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Consider a 25-year 5200,000 5/1 ARM having a 12% margin and based on the CMT index Suppose the interest rate is initially 6% and the
Consider a 25-year 5200,000 5/1 ARM having a 12% margin and based on the CMT index Suppose the interest rate is initially 6% and the value of the CMT is 53% five years later. Assume that all interest rates use monthly compounding (a) Calculate the monthly payment for the first 5 years. (b) Calculate the unpaid balance at the end of the first 5 years (c) Calculate the monthly payment for the 6th year. (a) The monthly payment for the first five years is $. (Round to the nearest cent as needed-)
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