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Question 11 3.6 pts An ARM loan, Loan Amount - $250,000; Monthly Payments, Index 1 Year Treasury bill, Index at the end of year 1

Question 11 3.6 pts An ARM loan, Loan Amount - $250,000; Monthly Payments, Index 1 Year Treasury bill, Index at the end of year 1 is 7%. Index at the end of year 2 is 6.5%. Index at the end of year 3 is 8.0%. One Year Adjustable, Margin - 1.50%, Term 30 years. Interest Rate Caps: annual 2% and life 5.5%, Teaser Rate 5%. The loan has negative amortization What is Loan balance in year 3?

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