2. You are seeking a (30-year) ARM loan of $175,000 which will charge 3 points. Assuming you keep this loan for 4 years, what are your CF's and the yield to lender (expressed as APR)? What do you pay each year in interest? Initial rate 3.625% Annual adjustments - Tbill +2.25% (rounded to 1/8%) Max change of 2% per year interest rate Max interest of 5% above initial rate Tbill Index, now at 4.73, then changes annually to: 2.73, 5.82, 6.96 On separate paper complete your handwritten computations. This will probably require more than one page to show all of your work, including the table of cash flows you use to compute the Lender Yield. After completing your calculations summarize the results in the table given below. Be sure to turn in your handwritten calculations as well as the completed table shown below or you will receive zero for this assignment. Problem 2. After completing your calculations, summarize your results in the table below. Year Index Int. Rate Monthly Amount Paid EOY Balance Charged Payment to Interest 1 4.73 2 2.73 3 5.82 4 6.96 Yield to Lender %