You have just bought a new house and gotten an adjustable-rate mortgage.  The mortgage interest rate adjusts at the second anniversary.  The mortgage is $250,000, 8% rate, and 30 years.  

a) What is the monthly payment during the first 2 years?

b) How much is owed at the end of the second year?

c) Assume the new interest rate is 7%.  What is the new payment in $s when the rate resets at the end of year 2?