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Please answer using excel: please show formulas and how you actually do it   on there! 1....

Please answer using excel: please show formulas and how you actually do it   on there!

1. You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked in for 3 years. Calculate the outstanding balance on the loan after 3 years. The interest rate after the initial lock period is 6.5%. (Note: the term on this 3/1 ARM is 30 years) 


A. $2,098.43 B. $2,183.95 C. $336,294.25 D. $347,901.57

2. You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in for 5 years. Calculate the payment after recasting the loan (i.e., after the reset) assuming the interest rate after the initial lock period is 8.0%. (Note: the term on this 5/1 ARM is 30 years) 


A. $1,684.59 B. $1,784.79 C. $1,887.75 D. $2,138.02

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