Roger buys a house costing $$300,000.$ He puts $20\%$ down and borrows the balance negotiating a $2-$year ARM $.$ The initial teaser rate is $3\%.$ What is the required monthly payment in year$1?$ Amortization is done on a $30$ year basis. This is a non$-$carryover ARM.

$$1,011\mathrm{.}85$

$$1,264$

$$1,590$

$$1,272$

$$1,342$

Question $38$

If after two years the mortgage rate changes to $5\%,$ what must be Roger's monthly payment for year $3?$