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You have decided to buy a $250,000 house. The bank will finance 80% of the price. You take a 10-year 2/1 adjustable rate mortgage (ARM),
You have decided to buy a $250,000 house. The bank will finance 80% of the price.
You take a 10-year 2/1 adjustable rate mortgage (ARM), which carries a 3.8% fixed rate for the first 2years, and 1-year LIBOR + 2 % afterwards.
Question: How much are the payments after 2 years if the LIBOR is 3%?
Group of answer choices
$2,047
$2,069
$2,099
$2,021
$2,082
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