Kathy and Jake are purchasing a house and are financing $465,000. The mortgage is a 20-year
5/1 ARM at 3.5% with a 2/7 cap structure. What will the remaining balance be after the first 5 years?

$396,038.65

$427,354.28

$407,836.29

$377,238.57

Question

Kathy and Jake are purchasing a house and are financing $465,000. The mortgage is a 20-year 
5/1 ARM at 3.5% with a 2/7 cap structure. What will the remaining balance be after the first 5 years?

 $396,038.65

 $427,354.28

 $407,836.29

 $377,238.57

anonymous · Answer

what's the formula?

anonymous · Answer

I think it's this

anonymous · Answer

can you tell what each letter mean?

anonymous · Answer

I don't know I mean...I tried the formula but it didn't work.

anonymous · Answer

have you any model answers for similar question, i'm not familiar with financail applications

anonymous · Answer

what's B, Bm, i, nt and m there?

anonymous · Answer

nevermind I figured it out. I'm sorry XD

anonymous · Answer

xD

anonymous · Answer

what answer did you get, fenetre?

anonymous · Answer

I now know that it isn't $396,038.65