Robert takes out a 30-year mortgage ARM loan for $600,000 at an initial rate of 6%. The rates are reset at the end of every year based on a set of rules, the details of which are not provided as the information is not required to do this problem.

Annual payment cap is 5% - mortgage payments can't exceed 5% from one year to next. Robert is made aware of the potential for a negative amortization under this kind of ARM.

Interest rates are as follows: Initial Rate = 6%, Rate for 2nd year = 8.4%, Rate for 3rd year = 9.6%.

A) Set up an Amortization table for the first 36 months of transactions - show the following columns: month, balance (beginning of month), Uncapped Payment (end of month), Actual Payment (end of month), Interest Paid, Principal Cleared, Balance (end of month)