Question $12$

$1$ pts

A borrower takes a $30-$year, fully amortizing, $5/1$ ARM for $$225,000$ with an initial interest rate of $4\mathrm{.}375\%.$ Assuming the index on which the loan rate is based rises by $1\%$ in the fourth year of the loan and remains at that level, what will the payment be in the sixth year of loan?

$$1,123\mathrm{.}39$

$$1,403\mathrm{.}71$

$$1,241\mathrm{.}89$

$$1,364\mathrm{.}95$