Financial Algebra HELP!?

A bank advertises an adjustable rate mortgage with the following terms: 15 year 6/1 ARM at 5% with a 2/6 cap structure What are the maximum interest rates for the 7th year and for the life of the mortgage? a. 7th year: 6%; Lifetime: 6% b. 7th year: 6%; Lifetime: 11% c. 7th year: 7%; Lifetime:... show more A bank advertises an adjustable rate mortgage with the following terms:

15 year 6/1 ARM at 5% with a 2/6 cap structure

What are the maximum interest rates for the 7th year and for the life of the mortgage?

a. 7th year: 6%; Lifetime: 6%

b. 7th year: 6%; Lifetime: 11%

c. 7th year: 7%; Lifetime: 11%

d.7th year: 7%; Lifetime: 6%
Meghan has a 15-year adjustable rate mortgage with a rate of 5.4% for the first 5 years. The monthly payment is $2,394.77. The amount of the mortgage is $295,000. What is the remaining balance after 5 years rounded to the nearest dollar?

a.$253,392

b.$151,314

c.$221,673

d.$196,667
A $900,000 balloon mortgage has terms of 25/7 with a 4% interest rate. What is the monthly payment rounded to the nearest dollar?

a.$4,751

b.$3,120

c.$3,000

d.$4,297
Edith obtains a $2,250,000 balloon mortgage for an investment property. The mortgage has terms of 20/4 at an interest rate of 4.5%. The monthly payment is $14,234.61. How much is the remaining balance after 4 years rounded to the nearest dollar?

a.$2,036,457

b.$1,566,739

c.$1,945,745

d.$1,800,000
The bank offers Mario a fixed rate loan with no points and a fixed rate loan with points. The difference in monthly payments between the loan with points and the loan without points is $37.18. The cost of the points is $2,600. What number is closest to the break-even point rounded to the nearest month?

a.6 months

b.26 months

c.70 months

d.82 months
Drew is purchasing a home for $452,000. He makes a 20% down payment and obtains a 30-year fixed rate mortgage loan at 6% annual interest. His monthly payments are $2,167.98. He pays an intangible tax of 0.2%. Which of the following is the total cost of principal, interest, down payment, and intangible tax?

a.$780,472.80

b.$781,196.00

c.$871,596.00

d.$871,776.80

Please help me answer and understand how to do these problems!!!!!
3 answers 3