DistinguishedScholar_Unit_4_HallHawkins

DistinguishedScholar_Unit_4_HallHawkins - 5 year adjustable...

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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
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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....
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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.

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DistinguishedScholar_Unit_4_HallHawkins - 5 year adjustable...

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