A variety of mortgages are available for the purchase of residential housing. One type, the adjustable-rate mortgage (ARM), has a fixed payment for 2 years. Then, based on any change in interest rates, measured by an interest index for treasury bills, a new fixed payment is calculated. Suppose you borrowed $100,000 for 30 years. The following table shows the different interest rates and their associated payments for the first 4 years of this loan (48 monthly payments). Years 1 and 2 3 and 4 Interest Rate Monthly Payments 9%, compounded monthly $ 804.62 12%, compounded $1021.36 monthly (i) (ii) What is the balance remaining on this loan after the 45 payment has been made? How much of the 46th payment is used to reduce the principal of the loan, and how much is to pay interest? A variety of mortgages are available for the purchase of residential housing. One type, the adjustable-rate mortgage (ARM), has a fixed payment for 2 years. Then, based on any change in interest rates, measured by an interest index for treasury bills, a new fixed payment is calculated. Suppose you borrowed $100,000 for 30 years. The following table shows the different interest rates and their associated payments for the first 4 years of this loan (48 monthly payments). Years 1 and 2 3 and 4 Interest Rate Monthly Payments 9%, compounded monthly $ 804.62 12%, compounded $1021.36 monthly (i) (ii) What is the balance remaining on this loan after the 45 payment has been made? How much of the 46th payment is used to reduce the principal of the loan, and how much is to pay interest