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3. you decide to get an arm loan for 200000 for...

# Question: you decide to get an arm loan for 200000 for...

###### Question details

You decide to get an ARM loan for $200,000 for 30 years starting at 5.00% with the interest rate adjustment of 2% annual cap and 9% lifetime ceiling. Let's say, based on the inflationary economy, your loan interest rate is projected to increase 2% annually for the next 5 years. What would be your projected monthly payment for the 4th year of your loan? a.$1,344.26

b. $1,558.32 c.$1,632.59

d. \$1,646.25