Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

تمرين 34

As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI, using Table 14-1 and the monthly PITI for the following mortgages.
Heather Gott bought a home with an adjustable-rate mortgage. The lender's margin on the loan is 3.5%, and the overall rate cap is 8% over the life of the loan.
a. If the current index rate is 3.75%, what is the calculated interest rate of the ARM?
b. What is the maximum overall ARM rate of Heather's loan?