Question

Please Help!

Will Fan & Medal!

Answer 1

Adam is approved for a 25-year 6/1 ARM at 4.35% with a 4/14 cap structure in the amount of $308,400. Assuming Adam is charged the maximum interest rate, what will his monthly payments be at the beginning of the seventh year?

$1,431.85

$1,688.04

$2,080.06

$2,291.86

Answer 2

@phi @prettygirl876 @Loser66 @SolomonZelman @sleepyjess @nincompoop @Night-Watcher @radar @rational @kropot72

Answer 3

the interest is held fixed for 6 years, then goes up 4 points each year (not to exceed 14 points in all)

Answer 4

determine the payments for the first 6 years to define the balance after 6 years then restructure the loan for the remaining time at +4 points interest

Answer 5

payments for a 25yr, fixed loan of .0435 will give us the initial period payments amounts
Po = 308400k^(12*25)(1-k)/(1-k^(12*25)), k=1+.0435/12
B6 = 308400k^(12*6)-Po(1-k^(12*6))/(1-k), k=1+.0435/12
use that for the remaining time (25-6) years at .0835
P1 = B6 k^(12*19)(1-k^(12*19))\(1-k), k=1+.0835/12


and sorry this is taking so long im in a class right now =(

Answer 6

Po = 1688.04 i believe

Answer 7

B6 = 261 595

if im not correct dont hate me

Answer 8

i see i typoed P1; that last fraction is flipped the wring way =(

P1 = 261595 k^(12*19)(1-k)/(1-k^(12*19)), k=1+.0835/12
= 2292 or so

Answer 9

and ill be back if need of help im in class so it sucks