11. Gina needs a $500,000 mortgage and is offered two choices. The monthly payments for the
fixed rate and predicted payments for the ARM are shown.
Adjustable Rate Mortgage
rear
Monthly
Year
Payment
1-20
$2,684.10
Adjustable Rate Mortgage
Year
Year
Monthly
Monthly
1-5
$2,533.43
6-20
$2,880.90
What is the difference between the total costs of the mortgages rounded to the nearest
hundred?
$26,400
$4,200
$14,600
$8,300