A 15 year variable rate mortgage offers a first year teaser rate of 3.11%. After that the rate starts at 5% adjusted based on actual interest rates.
Required:
If the mortgage is $325,000 compute the monthly payment during the second year, if the interest rate increases to 5%.
- $2550,
- $2262,
- $2630,
- $2389.
Note: Please show how to work it out.