1. Business
  2. Finance
  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

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution