Question: QUESTION 7 Ann gets a 30 year 1/1 Fully Amortizing ARM for $1,000,000, with monthly payments akd monthly compounding, Ann pays $10,000 in closing costs.

QUESTION 7 "Ann gets a 30 year 1/1 Fully Amortizing ARM for $1,000,000, with monthly payments akd monthly compounding, Ann pays $10,000 in closing costs. The initial rate is 2%. In the future, the rate will reset to 250 basis points above the LIBOR. There are no rate caps or floors. Suppose at origination the LIBOR was 1%. What is the annualized true APR for the loan?" QUESTION 8 "Ann got a 15 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% compounded monthly, with monthly payments. After 5 years of payments, Ann can refinance the balance into a 10 year Fully Amortizing FRM at an annual interest rate of 5.25% compounded monthly, with monthly payments. If Ann refinances into this 10 year loan, what will be her monthly savings on her mortgage payment

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