Lets pretend we are borrowing $290,000 on a 6/24 plan (not commonly seen but certainly not inappropriate);

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Let’s pretend we are borrowing $290,000 on a “6/24” plan (not commonly seen but certainly not inappropriate); the monthly payments will remain the same for all of years 1-6, based on a 5.16% stated APR interest rate, and then year 7’s monthly payment will be computed based on a new, higher predicted 6.12% APR.

Compute the monthly payment that applies to years 1 – 6, and the expected monthly payment for year 7. Show all steps!