$12.$ Emilio secured an ARM$-$loan for $$123,000$ to finance the purchase of his first home $9$ years

ago. The monthly payments are based on a $21-$year amortization. If the prevailing interest

rate is $5\mathrm{.}4\%/$year compounded monthly.

i$)$ Solve using Formula, What will be Emilio$$s monthly payment? $[6$pts$]$

ii$)$Solve using a TVM solver. What will be Emilio$$s monthly payment? Fill in the information

that you need in the TVM solver, use a variable or alpha in the box that needs to be solved

for, do not solve.$[6$pts$]$

N$($Periods$)=$ PMT$($payment$)=$

I$\%($Annual Rate$)=$ FV$($Future Value$)=$

PV$($Present Value$)=$ P$/$Y C$/$Y$=$

iii$)$ Solve using Formula,What will be his outstanding principal at the end of $9$ years?$[5$pts$]$

iv$)$What is his current home equity?$[2$pts$]$

v$)$ Currently the interest rate for his loan change to $1\mathrm{.}7\%/$year compounded monthly. What

will be the new monthly payment? Fill in the information that you need in the TVM solver,

use a variable or alpha in the box that needs to be solved for, do not solve.$[6$pts$]$

N$($Periods$)=$ PMT$($payment$)=$

I$\%($Annual Rate$)=$ FV$($Future Value$)=$

PV$($Present Value$)=$ P$/$Y C$/$Y$=$