A basic ARM is made for $200,000 at an initial interest rate of 6% for 30 years with an annua rest date. The borrower believes that the interest rate at the beginning of year (BOY) 2 will increase to 7%. a. Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1 ? b. Based on (a), what will the loan balance at the end of year (EOY) 1? c. Given that the interest rate is expected to be 7% at the beginning of year 2 , what will the monthly payment be during year 2 ? d. What will be the loan balance at the EOY 2 ? c. What will be the monthly payments inlyear 1 if they are to be interest only