Problem 5-4 An ARM for $101,300 is made at a time when the expected start rate is 5 percent. The loan will be made with a teaser rate of 2 percent for the first year, after which the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and payments will be made monthly. Required: a. What will be the payments during the first year? b. Assuming that the reset rate is 6 percent at the beginning of year (BOY/2, what will the payments be? c. By what percentage will the monthly payments increase? d. If the reset date is three years after loan origination and the reset rate is 6 percent, what will the loan payments be beginning in year 4 through year 25? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What will be the payments during the first year? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Monthly payment during year 1 Rentire Required B > d. If the reset date is three years after loal orly beginning in year 4 through year 25? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assuming that the reset rate is 6 percent at the beginning of year (BOY) 2, what will the payments be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Monthly payment in year 2 beginning year 4 through year 25: Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D By what percentage will the monthly payments increase? (Round your final answer to nearest whole percent.) % Percentage increase in monthly payment Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D If the reset date is three years after loan origination and the reset rate is 6 percent, what will the loan payments be beginning in year 4 through year 25? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Show less Monthly payments at beginning of year 4 through year 25