A young married couple want to purchase their first home and are considering Graduated payment mortgage or variable rate mortgage.Lending value of the house is $$350000.$They require loan of $$250000.$One year standard mortgage rate are J$12=5\mathrm{.}5\%$They want to keep the payments low If GPM Loan $=$$$250,000$Interest rate J$126\mathrm{.}5\%$ Initial payment $$850$ monthly Graduation rate the monthly payments increase by $$150$ each year $.$VRM Loan $=$$$250000$Interest rate J$12=4\mathrm{.}5\%$Amortization $=25$ yrs Payment monthly For first $3$ years of the mortgage interest rate increases will be absorbed by loan balance to keep payment constant The rates for next three years Year $1$ J$12=4\mathrm{.}5\%$Year $2$ J$12=6\mathrm{.}5\%$Year $3$ J$12=8\mathrm{.}5\%$Calculate outstanding balance after $3$ years on both options