Help!
Aimee and Ben are purchasing a condominium and are financing $520,000. The mortgage is a 30-year 4/1 ARM at 2.25% with a cap structure of 1.5/9. What will their payments be for the first 4 years?
A. $1,989.59
B. $2,410.52
C. $2,695.19
D. $4,188.06

Question

Help!
Aimee and Ben are purchasing a condominium and are financing $520,000. The mortgage is a 30-year 4/1 ARM at 2.25% with a cap structure of 1.5/9. What will their payments be for the first 4 years?
A. $1,989.59
B. $2,410.52
C. $2,695.19
D. $4,188.06

anonymous · Answer

What Do You think

anonymous · Answer

well $520000/30

anonymous · Answer

all you need to do is figure the monthly payment using 520,500 loan at 2.25% (amortized at 30 years). All the other information doesn't matter.

anonymous · Answer

that will give you the unit rate
then multiply the answer by 4

anonymous · Answer

I know the formula to use is M=B[i(1+i)^nt/(1+i)^nt-1] but i'm not sure how to plug in the answers given/.

anonymous · Answer

?