A borrower has been analyzing different adjustable rate mortgage (ARM) alternatives for the purchase of a property. The borrower anticipates owning the property for flve years. The lender first offers a $146,000,30-year fully amortizing ARM with the following terms; Initial interest rate =6 percent Index =1-year Treasuries Payments reset each year Margin =2 percent Interest rate cap= None Payment cap = None Negative amortization = Not allowed Discount points =2 percent Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BON 2=9 percent; (BOY)3=10.5 percent; (BO ) 4=11.5 percent; (BO ) 5=13 percent. Required: a. Compute the payments and loan balances for the unrestricted ARM for the five-year period