Question $3(5$ marks$)$: Assume VRM $($variable rate mortgage$)$ of $400,000,$ monthly payments, a $3-$year term and amortization of $25$ years. Assume the interest rate j$12=4\%$ would remain unchanged for the first six months of the term, but it has a high possibility to increase since the beginning of $7$th month. This said, what would be trigger rate? Make sure you find the annualized trigger rate. Hint: trigger rate is the level of interest rate that makes PMT $=$ interest component for the $7$th month.