Question: Consider a 3 / 1 ARM with a loan amount of $ 2 2 5 , 0 0 0 , a 3 0 - year

Consider a 3/1 ARM with a loan amount of $225,000, a 30-year term, and an initial interest rate of 6%. Fixed monthly payments are to be made for three years, and the loan is fully amortizing.
(a) What will the monthly payments be for the first three years? What will the loan balance be after three years?

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