The Following Problem Involves Adjustable-Rate Mortgage

question 213

Multiple Choice

The following problem involves adjustable-rate mortgage. You will need a table of monthly payments.
-Harry has a 1-year ARM for $75,000 over a 25-year term. The margin is 2%, and the index rate starts out at 8.5% and increases to 10% at the first adjustment. The balance of principal at the end of
The first year is $74,113.56. Find the amount of interest owed for the first month of the second year.

• A)$741.14
• B)$674.79
• C)$731.25
• D)None of the above is correct.

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a situation where a person is compelled to act against their will or make a contract under pressure or threats, rendering the agreement potentially voidable.

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