James Kinchen has a 1-year ARM for $52, 021 over a 19-year term The margin is 2% and the wide* rate starts out at 6.9% and increases to 10.0% at the first adjustment.
The balance of principal at the end of the firs! year is $50, 055 27 The ARM includes a periodic rate cap of 2% per adjustment period.
Find
(a) the interest owed and
(b) the monthly payment due for the first month of the first year (a) The interest owed it $ (b) The monthly payment due for the first month of the first year is