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Suppose you take a 3/1 interest-only ARM for $100,000, monthly payments, 30-year term. The initial contract rate is 4.00% and the contract rate for year

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Suppose you take a 3/1 interest-only ARM for $100,000, monthly payments, 30-year term. The initial contract rate is 4.00% and the contract rate for year 4 is 6.50%. The tender charges two discount points. What is the balance of the loan at the end of year 4? O 95,347.22 94,892.15 96.483.13 O 98,591.88

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