1. what is the monthly payment for this loan for year 1?

2. year 2?

3. year 3?

4. what is the balance at the end of year 2?

5. suppose you terminate yoir loan at the end of year 2, what id the wffectuve rate for this loan ?

pts A 30 year, tuly amortizing $200,000 adjustable rate mortgage (ARM) with the following term: Initial interest rate-5.5%, index-1-year Treasuries, Payment reset each year, Margin=2%, interest rate cap-1% annually and 3% Vietime, discount points-2%. The index is as follows, end of year 1 to end of year 3: 5%, 6.5% and 7.5%. Negative 21. What is the mortgage rate for year 1