Aimee and ben are purchasing a condominium and are financing $610,000. the mortgage is a 20-year 3/1 arm at 4.15% with a cap structure of 1.5/10. what will their payments be for the first 3 years?

For the first 3 years, the interest will not be changed because of the 3/1 ARM policy. The interest will stay at 4.15%. The monthly payments will be based on the 4.15% and 20 year period. The interest is then converted to effective monthly rate by dividing by 12 and payments will computed using the formula
A = Pi (i + 1)^n / [(1 + i)^n - 1]

The answer to the question is d