James Kinchen has a 1-year ARM for $110 comma 000 over a 30-year term. The margin is 2% and the index rate starts out at 2.6% and increases to 5.0% at the first adjustment. The balance of principal at the end of the first year is $107 comma 330.96. The ARM includes a periodic rate cap of 2% per adjustment period. What is the monthly payment adjustment at the end of the first year?
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Part 1
The monthly payment adjustment at the end of the first year is $
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(Round the final answer to the nearest cent as needed. Round all intermediate values to the nearest cent as needed.)