In a period of changing financial environment as the current one, because we need to deal with inflationary pressures interest rates are increasing. If you have a loan such as the one your provided in the above case (2) and after five years interest rates may change - we observe increases of the interest rates now, but in different time periods we experienced in the past we watched a decline in interest rates. 

How would you deal with the fact that five years after the loan interest rates change. Discuss the matter from the borrowers as well as from the financial institution point of you, provide your action in your excel sheet, explain the process of your analysis and the formulas used as well your conclusions and suggestions. Be specific