Question: Suppose a variable 5-5-5 cap 2 loan. Total maturity is 20 Y. The initial interest rate is 2,5%. Hence the maximum rate one can ever

Suppose a variable 5-5-5 cap 2 loan. Total maturity is 20 Y. The initial interest rate is 2,5%. Hence the maximum rate one can ever pay is 4,5%.

What is the maximum monthly payement you will ever have to make?

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