Question
Suppose you take a 30-year, one-year adjustable, monthly payment ARM of $360,000 with two discount points. Your payment in year one is $2,158.38, your payment
Suppose you take a 30-year, one-year adjustable, monthly payment ARM of $360,000 with two discount points. Your payment in year one is $2,158.38, your payment in year two is $2,509.39, and your outstanding balance at the end of year two is $352,014. If you repay the loan at the end of year two, what is the effective cost?
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To calculate the effective cost of the loan we need to consider the total amount of payments made du...
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Finite Mathematics and Its Applications
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
12th edition
978-0134768588, 9780134437767, 134768582, 134437764, 978-0134768632
