Velida took out a 5/1 variable-rate mortgage for $150,000. The interest rate
for the first period was fixed at 5.25%, and the loan was amortized over 30
years. At the end of the initial loan period, the interest rate was 6.75%, plus a
1.5% margin. What was Velida's monthly mortgage payment during the initial
fixed-rate period?
O A. $809.54
O
B. $828.31
C. $873.09
D. $839.09
O

B

Step-by-step explanation:

The amortization period in months is:

30 years * 12 = 360 months

The monthly interest rate would be 5.25%/12 = 0.004375

The payment for monthly mortgage formula would be:

Where

E is the monthly mortgage payment

C is the cost of mortgage, cost is $150,000

r is the monthly rate of interest, which is 0.004375

n is the period, in months, which is 360

Substituting, we get our

So, the correct answer is B

move it to the other side

step-by-step explanation:

i think it might be a but you might want a second opinion