Question: Show your calculation steps. For example, if a question asks you to calculate the monthly payment, state what you use for PV, I, and N.

Show your calculation steps. For example, if a question asks you to calculate the monthly payment, state what you use for PV, I, and N. Answers without the calculation steps will only receive 50% even if correct. Question 1 You are considering borrowing $190,000 to buy a $200,000 house. The bank offers you a 30year mortgage with a fixed interest rate of 4.5%. What is your monthly payment? Question 2 For a loan of $100,000, at 4% interest rate for 30 years and monthly payments, find the outstanding loan balance at the end of year 4 and year 15. Question 3 You take a 5/1 interest-only ARM for $250,000, monthly payments, 30-year term. The initial contract rate is 4.5% for the first 5 years. What is your monthly payment for the first 5 years?

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