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You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked...

You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked in for three years and is expected to increase to 6.5% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years.) A) $1959.99 B) $1,874.45 C) $1,422.15 D) $1,320.19

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You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked in for 3 years and is expected to increase to 6.5% at the end of the lock period.
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