10.AnARMadjusts annually, has a 1% periodic cap and a 3% lifetime cap, a 30-day average LIBOR index, a margin of 250 basis points, and a going-in teaser rate of 5.0%.What is the interest rate for years 2 through 5 if the periodic adjustment is made from the teaser rate and if our indexed LIBOR average is at 3.5% at loan inception and at 4.5%, 5.0%, 6.5%, and 7.0%for years 2-5 respectively ?

1 2 3 4 Potential Gross Income (PCI) $180,000 $185,400 $190.962 $196,691 $202.592 - Vacancy and Collection Loss 18,000 18.540 19.096 19.669 20.259 = Effective Gross Income (CGI) 162,000 166,860 171,866 177,022 182.332 - Operating Expenses (OE) 64,800 66,744 68,746 70,809 72.933 - Capital Expenditures (CAPX) 8,100 8.343 8,593 8,851 9,117 = Net Operating Income (NOI) $89,100 $91,773 $94.527 597,362 $100.282 Debt Service (DS) 58.444 58,444 58.444 58.444 58.444 = Before Tax Cash Flow (BTCF) $30.656 $33,329 $36,082 $38,918 $41,839 - Tax Liability (TAX) 7.645 8.658 9,708 10,798 6.951 = After- Tax Cash Flow (ATCF) 23.011 24,671 26.374 28, 119 34.887 The Reversion Sales Price $1,033,000 Rev. 11/20/15 - Selling Expenses 58,300 =Net Sales Proceeds 974,700 - Remaining Mortgage Balance -631,026 =Before Tax (Equity) Reversion 343,674 - Taxes Due on Sale - 32,032 = After Tax (Equity) Reversion $311,642