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A 30-year, $200,000 adjustable-rate mortgage starts out with the rate of 4%. The borrower makes only...

A 30-year, $200,000 adjustable-rate mortgage starts out with the rate of 4%. The borrower makes only the required payments in the first year. If after one year the rate resets to 5.1%, what is the new required payment?

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Answer #1

Calculate the new required payment as follows:

New payment is $13,118.43.

Formulas:

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