Question: George takes a 3 0 - year fully amortizing 5 1 ARM for $ 2 5 0 , 0 0 0 with an initial interest

George takes a 30-year fully amortizing 51 ARM for $250,000 with an initial interest rate of 4.75 percent. Assuming the index on
which the loan rate is based rises by 1 percent in the fourth year of the loan and remains at that level, what will the payment be in
the sixth year of loan for George?
Multiple Choice
$1,304
$1,603
$1,439
$1,559
George takes a 30-year fully amortizing 51 ARM for $250,000 with

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