3)An ARM is made for $150,000 for 30 years with the following terms: Initial interest rate 7 percent Payments reset each year Interest rate cap None Payment cap 6 percent increase in any year Fully amortizing; however, negative amortization allowed if payment cap reached Beginning of year (BOY) 2 = 7 percent; (BOY) 3=9.5 percent. Compute the payments, and loan balance