Question: I need detailed answer with steps please 24. You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in

I need detailed answer with steps please

24. You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in for 5 years. Calculate the payment after recasting the loan (i.e., after the reset) assuming the interest rate after the initial lock period is 8.0%. (Note: the term on this 5/1 ARM is 30 years)

A. $1,684.59

B. $1,784.79

C. $1,887.75

D. $2,138.02

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