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I need these four questions answered with explanations using the BAII Plus Calculator steps please. Suppose that you are considering taking out an adjustable-rate mortgage

I need these four questions answered with explanations using the BAII Plus Calculator steps please.

Suppose that you are considering taking out an adjustable-rate mortgage with the following terms:

Amount borrowed: $225,000

Index rate: Prime Rate (Current value is 3.5%)

Margin: 200 basis points.

Periodic cap: 1.5 percentage points

Lifetime cap: 5 percentage points

Amortization: 25 years

If the loans interest rate adjusts every year and the prime rate falls to 2.75% by the end of the first year, what will your payment be in the second year of the loan?

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