Consider an adjustable-rate mortgage (ARM) of $100,000 with a maturity of 30 years and monthly payments. At the end of each year, the... ( image)

How much principal of the loan will be repaid (i.e., amortization) in year 1, 2, and 3?

$1,298.67, $805.10, $1,246.67

O $4,467.00, $5,867.88, $8,705.26

O $7,166.55, $9,510.36, $7,946.99

$5,867.88, $8,705.26, $6,700.32

$1,613.23, $1,298.67, $805.10

O $597.21, $792.53, $662.25

What is the balance of the loan at the end of year 1, 2, and 3?

O $98,387, $97,088, $95,709

O $96,699, $95,709, $94,283

O $98,386, $96,699, $96,283

O $98,653, $97,088, $95,709

O $98,387. $97.188, $96,001

$98,387, $97,088, $96,283

O $98,653, $97,088, $96,283

Please show your work on an excel sheet or financial calculator

If the loan is repaid at the end of year three (3), what amount of discount points should the lender have charged to earn an effective yield of 9%?

a 3.22 points

b.3.22 points

c 2.57 points

d. 3.75 points

e 2.95 points

f. 4.18 points

4). How much interest expense of the loan will be paid in year 1, 2, and 3?

O $5,867.88, $8,705.26, $6,700.32

O $1,613.23, $1,298.67, $805.10

O $7,166.55, $9,510.36, $7,946.99

$4,467.00, $5,867.88, $8,705.26

O $597.21, $792.53, $662.25

O $1,298.67, $805.10, $1,246.67

How much principal of the loan will be repaid (i.e., amortization) in year 1, 2, and 3?

$1,298.67, $805.10, $1,246.67

O $4,467.00, $5,867.88, $8,705.26

O $7,166.55, $9,510.36, $7,946.99

What is the balance of the loan at the end of year 1, 2, and 3?

O $98,387, $97,088, $95,709

O $96,699, $95,709, $94,283

O $98,386, $96,699, $96,283

O $98,653, $97,088, $95,709

O $98,387. $97.188, $96,001

$98,387, $97,088, $96,283

O $98,653, $97,088, $96,283

$5,867.88, $8,705.26, $6,700.32

$1,613.23, $1,298.67, $805.10

O $597.21, $792.53, $662.25

Time T-Bill Yield At origination (for year 1)= 3.50% At end of year 1 (for year 2)= 4.00% At end of year 2 (for year 3)= 8.00% At end of year 3 (for year 4)= 5.00% At end of year 4 (for year 5)= 11.00% 1). What are the contract rate for years 1, 2, 3, and 4? 4.50%, 6.00%, 9.00%, 7.00% 5.50%, 6.00%. 9.00%, 8.00% 4.50%, 6.00%, 10.00%, 7.00% O 4.50%, 7.00%, 10.00%, 8.00% O 5.50%, 6.00%, 10.00%, 7.00% 5.50%, 5.00%, 10.00%, 7.00% Time T-Bill Yield At origination (for year 1)= 3.50% At end of year 1 (for year 2)= 4.00% At end of year 2 (for year 3)= 8.00% At end of year 3 (for year 4)= 5.00% At end of year 4 (for year 5)= 11.00% 1). What are the contract rate for years 1, 2, 3, and 4? 4.50%, 6.00%, 9.00%, 7.00% 5.50%, 6.00%. 9.00%, 8.00% 4.50%, 6.00%, 10.00%, 7.00% O 4.50%, 7.00%, 10.00%, 8.00% O 5.50%, 6.00%, 10.00%, 7.00% 5.50%, 5.00%, 10.00%, 7.00%