6.) Determine the monthly payments for the first 3 years for a 1/1 ARM in the amount of $250,000 which has a composite rate made up of the 360-day LIBOR rate plus a margin of 1.75%. Assume a 30-year amortization and use the projected index rates below:

TimeFrame Today One year from now Two years from now 360-Day LIBOR 0.85% 1.25% 1.45% Monthly Payment during Year 1: Monthly Payment during Year 2: Monthly Payment during Year 3