Question: ( 1 5 Percent ) An ARM contract with 2 / 1 interest rate caps and a 2 . 0 0 margin is $ 1

(15 Percent) An ARM contract with 2/1 interest rate caps and a 2.00 margin is $100,000, monthly payments for 30 years. The contract rates for the first two years are 5.00% and 5.50%,respectively. At the end of year two index value is 4.00%, What is the payment of the loan in year three?

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