A floating rate mortgage loan is made for $$170,000$ for a $30-$year period at an initial rate of $12$ percent interest. However, the borrower

and lender have negotiated a monthly payment of $$1,360.$

Required:

a$.$ What will be the loan balance at the end of year $1?$

b$.$ What will be the loan balance at the end of year $2?$ If the interest rate increases to $13$ percent at the end of year $2$ and the

payment remains at $$1,360,$ how much is the total interest $($mortgage payment plus negative amortization$)$ in year $2$ and total

interest $($mortgage payment plus negative amortization$)$ in years $2$ to $5?$

Complete this question by entering your answers in the tabs below.

Required A

What will be the loan balance at the end of year $2?$ If the interest rate increases to $13$ percent at the end of year $2$ and the

payment remains at $$1,360,$ how much is the total interest $($mortgage payment plus negative amortization$)$ in year $2$ and

total interest $($mortgage payment plus negative amortization$)$ in years $2$ to $5?$

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.

Loan balance in year $2$

Interest accrued $-$ Year $2$

Interest accrued $-$ Years $2$ to $5$