Consider an adjustable rate mortgage of $90,000 with a maturity of 30 years and monthly payments.

at the end of each year, the interest rate is adjusted to become two percentage points above the index.

there is an annual cap of 300 basis points (3%), and a lifetime cap of 500 basis points (5%).

in the first year the contract rate is 7%, with no teaser.

in year two, the index rate is 9%.

what monthly payment is called for in year two?

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Select the correct answer. which is a benefit of planning for your future career? a. being less prepared after high school. b. having higher tuition in college. c. earning college credits in high school. d. ruining your chances of having a successful career.

Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.