A floating rate mortgage loan is made for $$155,000$ for a $30-$year perlod at an Initial rate of $12$ percent interest. However, the borrower and lender have negotlated a monthly payment of $$1,240.$

Required:

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

b$.$ If the interest rate increases to $13$ percent at the end of year $2,$ how much is the payment plus negative amortization in year $2$ and year $5$ if the payment remains at $$1,240?$