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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 39
As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI, using Table 14-1 and the monthly PITI for the following mortgages.
Joe and Gloria Moutran are purchasing a house in Winter Springs financed with an adjustablerate mortgage. The lender's margin on the loan is 2.75%, and the overall rate cap is 6.2% over the life of the loan. The current index rate is 5.8%.
a. What is the calculated interest rate of the ARM?
b. What is the maximum overall ARM rate of the loan?
Joe and Gloria Moutran are purchasing a house in Winter Springs financed with an adjustablerate mortgage. The lender's margin on the loan is 2.75%, and the overall rate cap is 6.2% over the life of the loan. The current index rate is 5.8%.
a. What is the calculated interest rate of the ARM?
b. What is the maximum overall ARM rate of the loan?
Explanation
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Consider the lender's margin on the loan...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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