The Initial Monthly Payment on an Adjustable Rate Mortgage with a Balance

question 25

Multiple Choice

The initial monthly payment on an adjustable rate mortgage with a balance of $100,000,an interest rate of 8.5% annually and a term of 30 years will be:

• A) $3,711.78
• B) $733.76
• C) $768.91
• D) $3,688.83

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Definitions:

Negative

A value less than zero or a direction opposite to the expected or common.

Variance

A measure of the dispersion of a set of data points around their mean, indicating how spread out the data points are.

Sample Size

The number of observations or individuals in a subset of a population used for statistical analysis.

Random Sample

A subset of individuals chosen from a larger set, where each individual has an equal chance of being selected.