2. Savannah took out a 7/1 variable-rate mortgage for $114,000. The interest rate for the first period was fixed at 6.15%, and the loan was amortized over 30 years. At the end of the
initial loan period, the interest rate was 7.15%, plus a 1.25% margin. Use this information to
figure out how much Savannah's monthly payment increased in the eighth year of her
mortgage. (10 points: Part 1 - 2 points; Part II - 2 points; Part III - 2 points; Part IV - 2 points;
Part 1 - 2 points)
I
Part I: What was Savannah's monthly payment for the first 7 years of the loan?