. . 21. You are considering an adjustable rate mortgage loan with the following characteristics: Loan amount: $300,000 Term: 20 years Index: one year T-Bill Margin: 2.5% Periodic cap: 2% Lifetime cap: 5% Negative amortization: not allowed Financing costs: $3,500 in origination fees and 1 discount point Suppose the Treasury bill yield is 3.5% at the outset and is then moves to 4.5% at the beginning of the second year and to 8.5% at the beginning of the third year. a) Build a table that shows the contraetrate, monthly payment, and the end of year balance for yearst b) If you pay off the loan at the end of the third year, what is your effective borrowing cost? (Don't forget about the financing costs). . . 21. You are considering an adjustable rate mortgage loan with the following characteristics: Loan amount: $300,000 Term: 20 years Index: one year T-Bill Margin: 2.5% Periodic cap: 2% Lifetime cap: 5% Negative amortization: not allowed Financing costs: $3,500 in origination fees and 1 discount point Suppose the Treasury bill yield is 3.5% at the outset and is then moves to 4.5% at the beginning of the second year and to 8.5% at the beginning of the third year. a) Build a table that shows the contraetrate, monthly payment, and the end of year balance for yearst b) If you pay off the loan at the end of the third year, what is your effective borrowing cost? (Don't forget about the financing costs)