What will monthly payments be during year

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Reference no: EM131304781

A basic ARM is made for $200,000 at an initial interest rate of 6% for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year 2 will increase to 7%. Assuming that a fully amortizing loan is made, what will monthly payments be during year 1? What will the loan balance be at the end of year 1 ?

Reference no: EM131304781

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