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Jim gets a 30-year 225k 5/1 FA-ARM. The bank offers a teaser rate of 4.375%. The mortgage is based on 1-year CMT with a rate

Jim gets a 30-year 225k 5/1 FA-ARM. The bank offers a teaser rate of 4.375%. The mortgage is based on 1-year CMT with a rate that increases by 1% in the 4th year of the loan and remains at that level. Calculate the mortgage monthly payment in the 6th year. Please show your work for full credit.

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