3. You are seeking a (30-year) ARM loan of $350,000 which will charge 2 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 5.250% Annual adjustments Tbill +2.50% (rounded to 1/8% ) Max payment change of 10% per year (negative amortization allowed) Max interest of 6% above initial rate Tbill Index, now at 3.21, then changes annually to: 1.23,5.92,9.46 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 3. After completing vour calculations, summarize vour results in the table below. Yield to Lender =% 3. You are seeking a (30-year) ARM loan of $350,000 which will charge 2 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 5.250% Annual adjustments Tbill +2.50% (rounded to 1/8% ) Max payment change of 10% per year (negative amortization allowed) Max interest of 6% above initial rate Tbill Index, now at 3.21, then changes annually to: 1.23,5.92,9.46 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 3. After completing vour calculations, summarize vour results in the table below. Yield to Lender =%