Question

Jadynn obtains a 30-year 7/3 ARM at 6% with a 3/6 cap structure in the amount of $436,500. What is the monthly payment during the initial period?

Answer 1

use that formula

Answer 2

figure out the numbers and plugin

Answer 3

M= 436,500 (.06(1+.06))^30/(1+06)^30-1

Answer 4

Is that right?

Answer 5

you forgot to calculate i :

i = r/n = 0.06/12

Answer 6

and n = 12

Answer 7

436,500(.005(1+.005))^30/(1+.005)^30-1

Answer 8

Is that right?

Answer 9

You should get :


\(\huge \mathbb 436,500 \times \frac{\frac{0.06}{12} ( 1 + \frac{0.06}{12})^{12\times 30}}{( 1 + \frac{0.06}{12})^{12\times 30}-1} \)

Answer 10

AHH my brain hurts, so i shouldn't do 0.06/12 first? and so my formula isn't correct? just trying to do it so i can input it into a calculator

Answer 11

ur formula is correct, except for the missing 12 in exponent

Answer 12

and several other small typoes :)

Answer 13

use wolfram for calculator :

http://www.wolframalpha.com/input/?i=436%2C500+%5Ctimes+%5Cfrac%7B%5Cfrac%7B0.06%7D%7B12%7D+%28+1+%2B+%5Cfrac%7B0.06%7D%7B12%7D%29%5E%7B12%5Ctimes+30%7D%7D%7B%28+1+%2B+%5Cfrac%7B0.06%7D%7B12%7D%29%5E%7B12%5Ctimes+30%7D-1%7D+++

Answer 14

OO! okay thank you ! :3

Answer 15

np :)