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What is the answer to this question? Suppose you take a 30-year, one year adjustable, monthly payment ARM of $135,000 with two discount points. Your

What is the answer to this question?

Suppose you take a 30-year, one year adjustable, monthly payment ARM of $135,000 with two discount points. Your payment in year one is $943.94, your payment in year two is $1,131.67, and your outstanding balance at the end of year two is $132,843. If you repay the loan at the end of year two, what is the effective cost?

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