Chapter 5, Problem 4P

a.

Summary Introduction

Calculate the payment during the first year.

b.

Summary Introduction

Calculate payment at the beginning of the year (BOY) 2 when the reset rate is 6 % is assumed.

c.

Summary Introduction

Calculate percentage increase in the monthly payment.

d.

Summary Introduction

Calculate the payments at the beginning of the year 4 with reset rate 6% after 3 years of origination.