(Answered) Question consider a 2 million 8 30-year gpm with monthly

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Question: Consider a $2 million, 8%, 30-year GPM with monthly payments and two annual step-ups of 10% each (one after the first 12 payments, and the other after the 24th payment).

a. What is the initial monthly payment on this loan (prior to the first step-up)?

b. What is the final monthly payment level (after the second step-up)?

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