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Too late no one answer on time!!! PLEASE DON'T ANSWER******** CARLOS gets a 300000000 year 100000000/100000000 Fully Amortizing ARM for $1,000,000,000000000000000 with monthly payments and
Too late no one answer on time!!! PLEASE DON'T ANSWER******** CARLOS gets a 300000000 year 100000000/100000000 Fully Amortizing ARM for $1,000,000,000000000000000 with monthly payments and monthly compounding. CARLOS pays $10,000 in closing costs. The initial rate is 100000000%. In the future, the rate will reset to 2500000000000000 basis points above the LIBOR. There are no rate caps or floors. Suppose at origination the LIBOR was 10000000%. What is the annualized true APR for the loan. ANSWER IN %
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