Use your calculator to determine (1) the current mortgage payment, (2) the total interest paid, (3) the payment after the first adjustment, and (4) the maximum payment for each of the following $150,000, 30-year mortgages. Assume that the initial interest rate is 6 percent.
a. Annually adjustable, 1 percent per year, 5 percent lifetime cap
b. Fixed for 3 years and then annually adjustable, 2 percent per year, 5 percent lifetime cap
c. Fixed for 5 years and then annually adjustable, 2 percent per year, 6 percent lifetime cap
d. Fixed for 5 years and then adjustable every 5 years, 3 percent per period, 6 percent lifetime cap