Narrative 14-2
for Problems in This Section, Use Table 14-1 $3 \frac { 1 } { 4 } \%$

question 43

Short Answer

Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. Joan Grow bought a house with a 20-year, $30,000 adjustable rate mortgage. The margin on the loan is 3.75% and the rate cap is 6% over the life of the loan. The current index is $3 \frac { 1 } { 4 } \%$ . How much greater would the monthly payment be at the maximum overall rate of the loan than it is at present?

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