What is the principal portion

Assignment Help Financial Management

Reference no: EM131543749

What is the principal portion of the 188th month’s payment for a $450,000 15/15 Hybrid ARM Mortgage (first 15 years are fixed rate and second 15 years are adjustable – all payments are fully amortizing) with the following parameters: Fixed Interest Rate: 5.5% 1st Year of ARM portion - LIBOR Index: 1.85% 2nd Year of ARM portion - LIBOR Increase: 1.45% Margin: 275 basis points Annual Periodic Cap: 2% Lifetime Cap: 5%

a. $786.34 b. $906.79 c. $1165.87 d. $1242.31 e. None of the above

Reference no: EM131543749

Questions Cloud

When john goes to the physician for his colonoscopy : When John goes to the physician for his colonoscopy

Standard deviation of pound-denominated return : Calculate standard deviation of both pound- and dollar-denominated rates of return if each of nine outcomes.Standard deviation of pound-denominated return.

Advanced micro devices interest coverage ratio : Advanced Micro Devices (AMD) interest coverage ratio is 0.6

Decisions which a mortgage borrower must consider : Which of the following is/are decisions which a mortgage borrower must consider?

What is the principal portion : What is the principal portion of the 188th month’s payment for a $450,000 15/15 Hybrid ARM Mortgage

Benefits of adopting the euro as common currency : What are the Benefits of adopting the Euro as a common currency? What are the costs of adopting the Euro as a common currency?

What is yield to maturity : A zero-coupon bond with a par value of $1,000.00 has a current market value of $548.00. If the bond has 7 years to maturtiy, what is its yield to maturity?

Higher days receivables outstanding ratio : A company A has a higher days receivables outstanding ratio than company B therefore,

The price of put option with the same exercise price : The stock will pay a dividend of $1.85 in two months. What is the price of a put option with the same exercise price?

User Account

All Pages