two different buyers purchased a home 10 years ago. The first buyer took a 30-year 150,000 fix interest rate mortgage with an APR 4.5 %. The second buyer took a 30-year $150,000 adjustable rate mortgage (ARM) with starting interest rate of 3%. after 4 years the interest rate rose to 5.5% (it had an interest rate of 3% for years 1, 2, 3, and 4 and the interest rate changed to 5.5% in year 5 for the remaining balance and remaining time), both homeowners sold their house after 10 years. which homeowner paid the lease for the 10 years they paid on their loan? (pay attention to time on the ARM ).
two different buyers purchased a home 10 years ago. The first buyer took a 30-year 150,000 fix interest rate mortgage with an APR 4.5 %. The second buyer took a 30-year $150,000 adjustable rate mortgage (ARM) with starting interest rate of 3%. after 4 years the interest rate rose to 5.5% (it had an interest rate of 3% for years 1, 2, 3, and 4 and the interest rate changed to 5.5% in year 5 for the remaining balance and remaining time), both homeowners sold their house after 10 years. which homeowner paid the lease for the 10 years they paid on their loan? (pay attention to time on the ARM ).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:two different buyers purchased a home 10 years ago. The first buyer took a 30-year 150,000 fix interest rate mortgage with an APR 4.5 %. The second
buyer took a 30-year $150,000 adjustable rate mortgage (ARM) with starting interest rate of 3%. after 4 years the interest rate rose to 5.5% (it had an
interest rate of 3% for years 1, 2, 3, and 4 and the interest rate changed to 5.5% in year 5 for the remaining balance and remaining time), both
homeowners sold their house after 10 years. which homeowner paid the lease for the 10 years they paid on their loan? (pay attention to time on the ARM
).
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