Consider the mortgage discussed in Exercise 43, and assume that it carries a payment cap of 7%. Also, assume that the CMT index is 7.7% at the beginning of the seventh year.
(a) Calculate the unpaid balance of the loan at the beginning of the seventh year.
(b) Calculate the monthly payment for the seventh year, without using the payment cap.
(c) Calculate the monthly payment for the seventh year, using the payment cap.
(d) How much interest is due for the 73rd month?
(e) Determine the unpaid balance at the end of the 73rd month?