DistinguishedScholar_Unit_4_HallHawkins

# DistinguishedScholar_Unit_4_HallHawkins - 5 year adjustable...

This preview shows pages 1–2. Sign up to view the full content.

5 year fixed rate with annual payments Year Beginning Balance Interest Payment Ending Balance 1 \$150,000 \$11,250 \$37,075 \$124,175 2 \$124,175 \$9,313 \$37,075 \$96,414 3 \$96,414 \$7,231 \$37,075 \$66,570 4 \$66,570 \$4,993 \$37,075 \$34,488 5 \$34,488 \$2,587 \$37,075 \$0 TOTAL \$35,374 \$185,374 John will spend less money if he takes the ARM. The total interest will be \$34,217 on the The ARM saves money on interest because the balance of the principle went down befor

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 5 year adjustable rate with annual payments Year Beginning Balance Interest Payment Ending Balance 1 \$150,000 \$9,000.00 \$36,844 \$122,157 2 \$122,157 \$8,551 \$36,844 \$93,864 3 \$93,864 \$7,509 \$36,844 \$64,530 4 \$64,530 \$5,808 \$36,844 \$33,494 5 \$33,494 \$3,349 \$36,844 \$0 \$34,217 \$184,218 e ARM, but is \$35,374 on the FRM. A difference of \$1156. re the interest rate increased....
View Full Document

## This note was uploaded on 08/06/2011 for the course MT 217 taught by Professor Finance during the Spring '11 term at Kaplan University.

### Page1 / 2

DistinguishedScholar_Unit_4_HallHawkins - 5 year adjustable...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online