An interest-only ARM is made for $89,000 for 30 years. The start rate is 7.5-percent and the borrower will make monthly interest-only payments for three years. What will the payments be?

Calculate the required rate of return for climax inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. do not round your intermediate calculations.