Problemconsider a two-step mortgage for 150000 30 years, Ask an Expert

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Consider a two-step mortgage for $150,000, 30 years, monthly payments, an initial interest rate of 5%, a cap of 5%, and a single rate adjustment at the end of year 7. If the index rate at the end of year 7 is 5% and the margin is 2%, what is the payment amount during the last 23 years of this loan? Show all work.

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