Question: Question 1 1 3 . 6 pts An ARM loan, Loan Amount - $ 2 5 0 , 0 0 0 ; Monthly Payments, Index

Question 113.6 pts An ARM loan, Loan Amount - $250,000; Monthly
Payments, Index 1 Year Treasury bill, Index at the end of year 1 is
7%. Index at the end of year 2 is 6.5%. Index at the end of year 3
is 8.0%. One Year Adjustable, Margin -1.50%, Term 30 years.
Interest Rate Caps: annual 2% and life 5.5%, Teaser Rate 5%. The
loan has negative amortization What is Loan balance in year
3?

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