If the beginning of a house is $ 300 000 to pay in 20 years at an initial index rate 5.5 %, and a 2 % margins for 1 year and the adjusted balance after 1 years $ 286,035.52, adjusted index rate for the second year 5 %. Remember that the Adjusted Balance is the principal balance at the time of the first rate adjustment. Assume no caps apply.

Find : First year monthly payment Second year monthly payment Increases or Decreases? How much?