5/1 I/O ARM, Loan amount: $2,984,000, Interest rate: 4.5%, Term: 30 years. First year, annual and lifetime cap: 5%. Index: LIBOR. Margin: 2.5%

calculate the principal and interest payment in year 6 assuming the LIBOR is at 8% when the rate adjusts and the loan has been paid down by $500,000. Note, calculate the payment based on the remaining 25 years. A. $18,226.71 B. $22,722.12 C. $21,702.63 D. $26,071.11