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Question 2 A 3/1 ARM is made for $150,000 with a 30-year maturity. a) Interest rate is fixed for the first 3 years and the

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Question 2 A 3/1 ARM is made for $150,000 with a 30-year maturity. a) Interest rate is fixed for the first 3 years and the loan is fully amortizing. What is the monthly payment for the first 3 years if the interest rate charged is 7%? b) What is the monthly payment in year 4 if the interest rate falls to 6%? c) In question (a), what will be the monthly payment if the loan is interest only for the first 3 years at 7% interest rate

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