Please help question 7,9,10 by showing your work Thank you!

Consider the following information for the next two questions regarding an ARM loan: The index for year one is 8%, the margin is 2%, the lifetime cap is 6%, the annual cap is 2%, and the first-year-only teaser is 1%. 5. What is the first year contract rate? a. 6% b, 7% c.8% d.9% e. 12% 6. The maximum interest rate allowable during the life of the monrgage s a. 12% b. 13%. c. 14%. d. 15%. e. There is no maximum 7. A buyer can afford no more than $500 per month in payments. The most favorable loan available in the market is a 30 year loan at 9%, what is the maximum affordable house with a 20% down payment? a. $55,000 b. $63,306 c. $59,975 d. $69,636 $77,676 lender makes a S90,000 mortgage at 9% interest with monthly payments for 25 years. How much interest will be repaid during the fourth year of the loan? a. $7,749 c, si,376 Information for the next two guestions Consider an adjustable rate mortgage of $90,000 with a maturity of 30 years and monthly payments. At the end of each year, the interest rate is adjusted to become two percentage points above the index. annual cap of 300 basis points (3%), and a lifetime cap of 500 basis points (5%). In the There is an first year the contract rate is 6%, with no teaser. In year two, the index rate is 8%. 9. What is the contract rate in year two? b.10% e.9% d. 11% 10. What monthly payment is called for in year two? a. $786 b. $795 c. $720 d. S648