Today is October 1, 2XX1. Justine has just bought a home in beautiful Rockford, IL. The selling price of home was $365,000. Justine made a down payment of 20% and borrowed the balance. She was able to negotiate a 3-year ARM with an initial teaser rate of 3.00% and subsequent annual rates equal to the current 90-day T-Bill rate on the loans anniversary date (October 1) plus 1.50%. The loan is for 30 years with caps of 1 and 5. The loan has a floor of 3.00%. The following information may prove helpful: 90-day T-Bill rates: October 1, 2XX1 3.00% October 1, 2XX2 3.25% October 1, 2XX3 3.50% October 1, 2XX4 3.75% October 1, 2XX5 3.00% October 1, 2XX6 4.25%

What are Justine's monthly payment during:

a. Year 1 of the loan?

b. Year 2?

c. Year 3?

d. Year 4?

e. Year 5?

f. Year 6?